The financial services industry faces crisis because IFAs are failing to invest in new blood, according to research by specialist law firm Armstrong Neal.
A survey of 200 IFA practices showed 67 per cent could not see a time when they would take a trainee on, the vast majority citing cost as the deciding factor.
Of the 94 per cent who identified cost as a factor, 96 per cent said they preferred to recruit qualified IFAs or tied agents from direct salesforces.
Armstrong Neal partner Gareth Fatchett says: “New blood is vital if the market is to survive. In five years, as the older IFAs retire the market will shrink drastically.”