View more on these topics

Sales of IFA businesses hit by long-stop decision

Advisers looking to leave the industry may struggle to sell their firms after the FSA decided against introducing a 15-year long-stop on complaints, says The Money Portal head of distribution strategy Alan Easter.

He believes that very few prospective buyers would be willing to take on a business with its liabilities in the current economic climate. He added: “If a company is on the market at two times profit with lifelong liability for past advice, where is the value in the business? If there is no long stop, it would be foolhardy to buy any IFA businesses.”

Ernst & Young financial services partner Shaun Crawford said an intended consequence of the RDR may be to temporarily reduce the size of the IFA market.

He said: “The FSA may be using the RDR to temporarily drive people away from giving advice. They are looking for quality in the market, not quantity.”

Recommended

Why prevention is better than cure

Quoting the famous adage, prevention is better than cure; there are many proactive benefits that can improve wellness in the workplace, decrease stress, increase staff morale and reduce absenteeism, as well as attracting and retaining employees of a higher standard. With a recent study showing that employees in Britain are working below peak productivity, preventative benefits can ensure you address potential health issues or causes of stress at their source and ensure productivity in the workplace remains at an optimum level. With this in mind, how are you using preventative benefits to help keep your workforce happy and healthy?

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment