IFAlliance was formed in 2005, designed to pool a range of white-labelled products and services for members.
It has five member firms with 120 staff in total but is looking to treble in size over the next few years, generally targeting wealth-management focused firms with 3-9 RIs and an annual revenue of over £750,000.
The group outsources its Liberation Oeic, a £75m range of five sub-funds to North Investment Partners, Premier Fund Managers, Close Private Asset Management, T.Bailey and FundQuest.
Part of its proposition includes Profiler IQ, a forward-looking risk-profiling questionnaire and asset allocation tool.
Firms must pay a £7,000 one off joining fee, £250 a month to access the group’s services and a monthly ‘maintenance fee’ of £1,000 month though this is expected to reduce as the coalition grows.
IFAlliance managing director Andrew Perkins believes the shift to fee-based advice will alter the future role of advisers.
He says: “IFAs are not market timers, stock pickers asset allocators, they are first class relationship managers and tax wrapper choosers. IFAs who pertain to be experts in all markets are kidding themselves.”
Perkins, who is also chairman of adviser Oeic lobby group, The Investment Funds Association says the outsourced management of the funds to specialist third parties means the Liberation Oeic is watertight to conflicts of interest but notes that not all distributor influenced funds offer the same assurance.
He says: “The industry of distributor influenced funds needs to reflect properly on the FSA’s guidance notes to ensure its house in order. There’s no reason that the IFA market cannot move from distributor to manufacturer as long as there is a proper advice process and conflict of interest and disclosure issues are fully dealt with.”