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IFA sector fastest-growing of all brokers

The IFA sector was the fastest-growing of all insurance brokers in

both 1999 and 2000, according to a report by professional services

firm Imas Consultants.

The Medium Size UK Broker and Intermediary Report, exclusive to Money

Marketing, also found that despite common perception of IFAs being

small operations servicing local businesses, increasingly, they are

professionals with wealthy and corporate clients.

IFA firms saw their average turnover increase to 35 per cent in 2000

from 19 per cent in the previous year.

The next fastest-growing sector was general insurance firms which

increased turnover to 26 per cent from 16 per cent.

Although completed before the polarisation consultation paper was

published three weeks ago, Imas predicts that there will be

aggressive take-over activity within the independent sector.

Imas says takeover activity in the past has been held back because

bigger IFAs and others have been afraid of buying smaller IFAs for

fear of inheriting pension misselling liabilities.

The report focused on brokers with incomes between £3m and

£10m dividing them into four categories – IFAs, general, UK

commercial and Lloyd&#39s insurers.

The survey says: “The high level of productivity reflects that the

financial services companies surveyed are not five-people operations

selling pensions to local shop keepers but are businesses with

corporate and high-net-worth clients.”

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