It is never good to see a business falter or fail. Lifeboat Financial Group, the Telford group of IFAs and brokers has gone into administration.
The news will no doubt send a few shivers across the marketplace. Presumably, the management of some medium or large adviser companies out there know that they are close to or have come close to such a state in the past.We can only hope that their numbers are few.
At the time of Money Marketing going to press, the administrators were seeking buyers to take on the Lifeboat business and, in a climate where so much is up for grabs in distribution terms, it is more likely than not that a knight in shining armour will emerge.
If one does not, however, then it will be an important signal to the market that the sources of funding for buying distribution are not infinite. Providers' pockets may still be deep but they will be selective in choosing where to spend their cash.