View more on these topics

IFA numbers leap 29% as DSFs shrink

Despite constant predictions of doom and gloom for the independent sector, the number of IFAs has increased by 29 per cent over the last year to 36,365 from 28,230.

The latest figures from the FSA reveal IFAs make up 44 per cent of the total of 82,958 financial advisers in the UK. Direct salesforces represent the other 56 per cent or 46,593 advisers.

The new total gives a welcome boost to the beleaguered IFA sector which has had to overcome several major challenges threatening its livelihood in recent years.

IFAs have been faced with changes to polarisation, charging caps under stakeholder pensions and Catmarked products, the pension and FSAVC misselling reviews, the endowment crisis and challenges posed by the internet.

While IFAs continue to grow in number, direct salesforces have shrunk significantly with the sale of the Lincoln and Royal & Sun Alliance salesforces as well as the closure of the Prudential, Sun Life Financial of Canada and Britannic salesforces which have seen 5,000 sales staff axed.

Sofa director Jo Smith says: “There has been an awful lot of turnover from the direct side to the IFA sector. We now have to raise the standard of these new IFAs in terms of training so they can face the next onslaught against the sector which is depolarisation.”

DBS sales and marketing director Mark Summerfield says: “This is great news for the IFA sector, great news for the consumer and great news for the industry.”


Aberdeen Asset Managers – Aberdeen Growth VCT 1

Monday, 9 April. Aim: Growth by investing in unquoted companies and those listed on AIM.Minimum investment: £3,000.Opening-closing date: January 22, 2001-April 30, 2001.Charges: Initial 5 per cent, annual 2 per cent in years one and two, 2.5 per cent thereafter.Commission: Initial 3 per cent, renewal 0.5 per cent in first 3 years for brokers placing […]

CIS makes platinum bond transparent

CIS is making changes to its Platinum Bond Plus with-profits bond to make it more transparent. The bond now has a one-off charge of 4 per cent and there are no annual charges, bid-offer spreads variable initial allocations or exit penalties. The annual bonus rate remains at 5 per cent and is guaranteed for the […]

BoS mixing tracker and fixed rates for buy to let

Bank of Scotland is offering a buy to let mortgage which combines the features of fixed-rate and tracker loans. Borrowers pay a fixed rate of 6.99 per cent for three years, after which interest is paid at 1.75 per cent above the Bank of England base rate for the rest of the term. There is […]

European Central Bank resists rate cut

The European Central Bank today resisted mounting pressure for a cut in its interest rate, leaving it unchanged at 4.75 per cent.The decision surprised many analysts, and shows that the ECB sees inflation as its primary concern.ECB president Wim Duisenberg says: “Euro-area interest rates, both short-term and long, are not high by historical standards.” The […]


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 advice.

    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