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Cost pressure puts 5,000 jobs at risk in the IFA sector

Up to 5,000 jobs are at risk in the IFA sector and 16 per cent of IFA directors will be over retirement age next year, according to Plimsoll.

The consultancy’s latest research shows 470 of the 2,900 IFA directors will be over retirement age next year, which it believes will trigger a wave of retirements while “driving a number of firms to recon- sider their independence”.

It estimates that around 5,000 jobs could be under threat in the IFA sector as businesses come under pressure to reduce costs in line with sales due to the credit crisis.

The firm highlights 161 heavily indebted IFAs which it claims are now paying the penalty comparing their “high-risk strategy” with the 834 companies running their businesses debt-free, many with cash surpluses.

Senior analyst David Pattison says: “2009 will be a very exciting year for the industry, it will be a time to choose your enemy wisely. Going on the offensive may well be the best defence. Key to this is the successful targeting of your weakened, low-margin and heavily indebted competitors, their failure will be vital to your own company’s success.”

CBK Colchester principal Peter Chadborn says: “Almost every firm I speak to is having difficulty in most areas and times like this are testing IFAs’ business models like never before.”


Bupa launches workplace health initiative

Bupa UK Health Insurance is introducing Bupa Positive Health to encourage more firms to create a healthy workplace after research found four out 10 employees are overweight.

Darling looks at long-term strength

Chancellor Alistair Darling is co-chairing two Government-industry groups to focus on the long-term strength of the UK’s insurance and asset management industries. The first will be co-chaired with Aviva chief executive Andrew Moss, and the second with IMA chairman Robert Jenkins.

Fleet becomes MD at Skipton FS

Skipton Financial Services has appointed ex-AWD Moneyextra managing director Mark Fleet as its managing director. Fleet replaces Simon Holt who left the advisory arm of Skipton Building Society in June.

Simon Fletcher

Auto-enrolment: pay attention or pay the price

By Simon Fletcher

As a chief executive officer of a business in the financial services sector, I have been dealing with the introduction of auto-enrolment for our clients for some time, but I can also speak from an employer’s point of view, having to go through the process ourselves.


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