The IFA Consortium expects to sign up a fifth member in the next quarter.
Falcon Group chief executive Allan Rosengren says the collective is holding its next meeting on February 18, when it will finalise an invitation to another, as yet unnamed, adviser firm.
The IFA Consortium is currently made up of four distribution groups – Pi Financial, Falcon Group, Financial Synergies and Financial Services Advice & Support. The latter three are all owned by Aim-lis-ted financial services company Sumus.
Rosengren says the consolidation and shared learning being seen across the industry is evidence that the balance of power is increasingly tipping towards distributors.
He says: “This shows even more that the advisers have greater value than the man-ufacturer compared with other industries such as farming or grocery. I think it is partially that advisers hold the relationships but mainly because the advisory sector is still pretty fragmented. There are a lot of the same ideas out there but also still a lot of different ideas.”
Sumus reported a 33.8 per cent rise in profits to 840,000 from 628,000 in its results for the year ended September 30, 2006.
It bought FSAS for 2m last September which has helped boost the group’s turnover from 12.5m to 15.2m.
Rosengren says the firm is adopting a twin-pronged growth strategy which will see Sumus continue to be on the lookout for opportunities to acquire medium to big IFA businesses as well as looking to generate strong growth throughout 2007.