View more on these topics

Red tape slashes IFA values

The value of IFA firms is plummeting, according to IFA Portfolio, and advisers can no longer rely on the sale of the business to fund their retirement.

IFA Portfolio says IFAs can now expect to receive less than half what they could have sold their firms for three years ago.

Research carried out for IFA Portfolio by headhunter firm the Seer Group found that general insurance broker firms are considered a better buy because they are not burdened with the same amount of regulation.

The fall in value is due to regulation, says IFA Portfolio managing director Ted York.

He says fear of unknown regulation makes an IFA firm a less attractive proposition.

Prospective buyers are not deterred by the pension review as they would not be accountable for these costs, he says.

But the potential of further investigations which could dramatically slash the value of firms is putting off buyers.

He says the cost of carrying out admin has driven the value of firms down as IFAs spend less time selling and more time doing paperwork.

With the average age of an IFA at 54, there could be a lot of firms up for sale in the near future, says York, but a lack of young IFAs who could snap them up.

He says: “It is important to develop a greater proportion of non-regulated business if one is considering a future sale. IFAs could sell medical insurance or household insurance to increase the value of their firm.”

Recommended

Strength is surveyed

The financial strength of some of the UK&#39s biggest life offices has fallen over the last year, according to the Money Marketing Focus Financial Strength update.The free-asset ratios of seven out of 38 companies have dropped. The seven are: Britannic, CGU Life, Royal Liver, Scottish Friendly, Sun Life of Canada, Sun Life and Teachers Provident.Companies […]

Swot up to pass the test

Are you marketing and advertising your stakeholder expertise? The answer for most advisers is probably not. This is either because you do not see stakeholder as being a major part of your business or because its introduction seems too far away.On both counts, you could be wrong. Like it or not, stakeholder is likely to […]

Warning of advice &#39black hole&#39 on concurrency

Investors opting for a concurrent stakeholder instead of sticking with their existing AVCs or FSAVCs will fall into an advice “black hole” unless the Inland Revenue makes tax changes, predicts the ABI.In a circular leaked to Money Marketing, the ABI says if the Revenue maintains the unlevel playing field, which grants concurrent stakeholders a 25 […]

TUC stake plan offers five funds

The Trades Union Cong-ress&#39s stakeholder plan will offer the choice of two fund managers and five funds with free switching.The plan, which was officially launched last week at the TUC annual conference in Glasgow, has been developed in partnership with Prudential and Standard Life Investments. It is one of the first stakeholder schemes to be […]

Rayner Spencer Mills: Why we rate the Artemis Global Growth Fund

Ken Rayner and Graham O’Neill from RSM explain why they rate the fund, its investment process and how it can be used in a portfolio. The Artemis Global Growth Fund became a RSM ‘rated’ fund earlier this year. In this video, Ken Rayner and Graham O’Neill explain the fund’s investment approach, why they rate it, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com