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IFAs cutting time spent on less wealthy clients

Almost three-quarters of IFAs plan to reduce the amount of time they spend with less wealthy clients while 40 per cent might leave the business altogether, according to research commissioned by IFA and adviser coaching company the Grosvenor House Group.

The survey questioned almost 550 IFAs, asking them to answer yes or no to whether, in light of all the changes in the industry, they were considering either leaving the industry altogether, moving out of the private market into the corporate market or reducing time spent with less wealthy clients.

While reducing time spent with less wealthy clients was the most popular course of action, 40 per cent said they were also considering shifting towards the corporate market, and 40 per cent said they are considering leaving the industry entirely.

The firm says it is concerned that access to advice could be reduced and that access to independent advice could become restricted. Grosvenor fears that future generations will enter into retirement financially ill-prepared.

The survey was conducted by Grosvenor House chief executive Paul Cadde who emailed all IFAs listed on the Matrix database.

Cadde says: “This proves that much of the current speculation is in fact reality and the shape of the industry will undoubtedly change drastically in the near future.

“Which ever particular course of action is chosen, these results conflict with Government initiatives to improve the accessibility of financial advisers to the less wealthy. Talk by the Government of seconding IFAs to the Citizen&#39s Advice Bureau and to undertake some pro bono work is obviously not finding favour in the industry.”

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