View more on these topics

IFA chiefs&#39 pay falls by 20% at big companies

The directors of big IFA businesses have seen big cuts in salary and bonuses compared with general brokers, according to a report from IMAS corporate advisers.

The annual report compares the fortunes of the top 200 general and life distributors in the UK based on company accounts.

Directors of big IFAs with turnover above £10m saw their income fall sharply by 20 per cent. Smaller IFA businesses with turnover below £10m saw income rise by 10 per cent but this was at the expense of profitability.

On the general side, big personal lines brokerages saw directors&#39 pay increase by 29 per cent.

Remuneration for employees in IFAs with turnover of more than £10m fell by 12 per cent to £32,089 while smaller IFAs with turnover below£10m saw a 3 per cent increase to £31,259.

IFAs below £10m turnover saw employee costs as a percentage of sales at 34 per cent compared with 24 per cent at bigger IFAs, roughly on a par with personal lines brokers while costs in commercial brokers were higher.

All sectors saw increases in revenue but financial services again trailed other brokers. Smaller IFAs saw an increase of 12 per cent while bigger IFAs had a rise of 5 per cent.

Profit margins increased by 16 per cent within big IFA distributors while smaller operations saw the lowest rise at 4 per cent.

The change in profit from 2001/02 was 29 per cent for bigger IFA operations but fell by 65 per cent for smaller IFAs.

In terms of employer productivity, the only sector not to improve revenue per employee was IFAs with a decline of 15 per cent. Large personal lines businesses showed the most improvement with a 38 per cent increase.

IMAS managing principal Oliver Laughton-Scott says: “Financial services had a torrid 2003 but strengthening equity markets and the ever-growing need for advice suggests that this sector is undervalued. The weakness of many existing operations spells opportunities for new entrants.”


Ample to develop wraps as Carruthers focuses on IFAs

Consumer fund supermarket Ample will be developed into an extensive wrap platform and rolled out to IFAs following its acquisition by Tomas Carruthers, the former chief executive of Interactive Investor. Carruthers, who helped Interactive Investor through its 1991 acquisition by AMP and subsequent merger with Ample, has paid an undisclosed sum for the business which […]

Crawshaw takes over as Rodrigues quits B&B

Bradford & Bingley group chief executive Christopher Rodrigues has resigned in a move some believe will lead to B&B returning to its core business and selling off recent IFA acquisitions. Rodrigues, who joined B&B in 1996 as chief executive and engineered an unpopular demutualisation in 2000, is moving to San Francisco to become president and […]

Axa chops with-profits bonuses

Axa Sun Life has cut bonuses for its 1.65m with-profits policyholders, with bonuses on bonds cut to 2 per cent for the year to March 2004, from 2.5 per cent the previous year and personal pensions cut to 2.25 per cent from 3 per cent. Bonuses for mortgage endowments with a 3 per cent guarantee […]

IFAs will not compromise independence over GPPs

IFAs signing up staff to group personal pensions will be all-owed to describe themselves as independent even though a group personal pension provider has already been selected. The menu proposals say a firm enrolling employees into a GPP will not compromise its independent status if the scope of advice is restricted to advising on joining […]


Guide: 10 required letters — what to send, to whom and when?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. The topics in this guide include: the letters you need to send out; what to send and when; the importance of employee engagement; and what to consider as additional communication.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm