The training and compliance burden is a greater threat to small IFA firms
than multi-ties or cuts to commission, according to small London IFAs.
The research, by Equus Alliance, reveals that over 60 per cent of small
directly regulated IFAs consider training and compliance to be the major
threats to their businesses.
Less than 20 per cent of respondents consider that the end of polarisation
and introduction of multi-ties would be a greater threat.
The move away from paying indemnity commission was considered to be the highest risk to business by 21 per cent of respondents.
Over 70 per cent of all respondents deal with training and compliance
requirements in-house and 83 per cent say they are frustrated by the amount
of time spent on compliance matters.
Small IFAs want a more hands-on approach to compliance support facilities,
such as those offered by networks, according to the survey.
But they want the support to be localised and not simply to be provided
A hands-on approach to compliance support as opposed to an advisory role
was considered preferable by 100 per cent of respondents.
Equus Alliance managing director Dale Thornley says: “It is surprising
that most small directly regulated IFAs rate training and compliance as the
biggest threats to their business. I thought that the threat to indemnity
commission would rate higher.
“It is clear that small IFAs want more localised hands-on support with
training and compliance to alleviate their concerns.
“Small IFAs cannot afford to have their own training and competence
officers but they would prefer to deal with a locally based person they
know on this issue.”
The Equus Alliance is an alliance of small London IFAs. The survey
canvassed the views of 400 small directly-regulated IFAs based in the