Almost half of the LIA's IFA membership plan to take the multi-tied route following the shake-up of distribution after Sandler and CP121.
A survey of the association's IFA membership reveals 57 per cent will move away from being independent and 70 per cent of those will opt for the multi-tied option in a depolarised world. This means 40 per cent of LIA IFAs say they will become multi-tied.
Among the rest of the advisers who said they would move away from the IFA sector, opinions were divided as to what status they would adopt. Answers included becoming Authorised Financial Advisers, selling their businesses, retiring and trying to fight the changes.
The LIA has around 25,000 members, 13,000 of which are IFAs while the rest are direct salesmen. The survey was a representative sample of this number, with 1,500 responding to the survey during August.
Head of public affairs John Ellis says: “It was a surprising clear-cut vote of no confidence in the Sandler approach. It demonstrates the fears that IFAs have in their abilities to continue running their businesses if Sandler's proposals get implemented.”