Over a quarter of IFA firms are looking to buy adviser businesses in the next year, according to the Owen James IFA performance benchmark report.
Sponsored by Invesco Perpetual, the survey compiles data taken from 73 adviser firms to provide insight into current challenges facing IFAs.
Twenty-seven per cent say they are looking to buy firms in the next 12 months. Of those, 12 per cent are national firms, 12 per cent are regional and 3 per cent are local IFAs.
More advisers are studying for higher qualifications this year, with 33 per cent working towards diploma level, 25 per cent advanced diploma and 26 per cent towards certified or chartered. These figures compares with 20 per cent, 15 per cent and 19 per cent respectively who were studying for the qualifi- cations last year.
An average of half the advisers say their revenue now comes from fees. Owen James says small local firms account for the majority of fee-based revenue.
The report says: “This probably reflects the deeper relationship smaller firms have with their local client base, making explanation and justification of the change an easier task.”
Paladin Financial Services managing director Tim Purdon says: “Advisers are now charging fees for routine activities that would previously have been done for free because they are much more aware of the value of their time.”