Bradbury Hamilton believes the credit crunch could be “the final nail in the coffin” for transactional advisers.
Managing director Sheriar Bradbury says treating customers fairly requirements and the retail distribution review are making advisers lives difficult.
But he believes the slowdown in the housing market and the increased likelihood of a recession will have a big impact on new business levels particularly for transactional advisers due to their reliance on initial commission.
He has written to over 300 advisers explaining his concerns.
Bradbury says: “In the current climate of uncertainty and continued shortage of liquidity many advisers could be considering their future. The reticence amongst investors, evidenced by what appears to be the worst Isa season on record, makes worrying times for those advisers who rely on initial commission instead of recurring income to support their business. We are writing to advisers because we understand the mounting pressures associated with running an advisory business in today’s world.”