View more on these topics

‘Smaller IFAs will march on after the RDR’

Outgoing Bankhall chief executive Peter Mann is predicting a 20 per cent fall in the number of small and medium-sized IFAs by 2015.

Speaking candidly at the annual Bankhall conference in the Algarve as he prepared to hang up his shoes as chief executive, Mann admitted that the sector will shrink following the retail distribution review but was confident that small firms will still represent a marching force amid the ranks of IFAs.

He said: “If we look at 2015 when the RDR will really bite, the number of IFAs with business productions of up to £500,000 a year will decline from 70 per cent to around 50 per cent. That is a decline but absolutely not a demise as many commentators predict.

“There will be consolidation in the marketplace. It is natural and it is desirable but that 50 per cent will still represent a marching force in the IFA community.”

Addressing the choices that will face small IFAs, Mann said: “The choices for advisers are stark. They are to be consolida- ted, to exit voluntarily or on a planned basis or to transition.”

This transition will involve a marked shift from transactional advice to passive inc- ome, he said. “It will be financially and conceptually tough but if they want to realise value in their businesses in future, the only value is in passive income. So they are going to have to make that journey and it is quite a long one,” he said.

Mann said an element of blurring in advice and sales will accompany the final version of the RDR on November 25 but was hopeful that a clear outcome will be achieved in terms of “what an adviser feels he should be able to do and how is he able to offer advice for sales”.

Mann gave up his responsibilities at the firm on Monday to take up the role of chief development officer for parent group Skandia UK. He confirmed that Bankhall non- executive chairman Mike Gordon will take on wider executive responsibilities until a new chief is appointed in his place.

He said: “We are going to appoint externally and that search will begin immediately on my return to the UK. I will be involved along with Skandia and I clearly have a view of the sort of person I want to work with the team and deliver our plan but it is about getting it right rather than getting it quick.”

Sources within Bankhall suggest the decision could be reached within a month.

When probed on the likelihood of conference keynote speaker and former Sesame boss and Just Retirement chief operating officer Patrick Gale taking the helm, Mann said: “He was invited as a very good friend and someone who has run a very successful distribution channel with great insight into the marketplace.”


‘Multi-asset is the new diversifier’

Globalisation has accelerated market correlation but a multi-asset strategy can improve diversification and manage downside in a bear market, says Schroders head of IFA sales Steve Jackson.

The duellists

Jim Reeve chief executive officer, Positive Solutions

“Brown did well to put himself across as the man with the experience to bring back stability. What will be critical is to rebuild consumer confidence in the financial system and prevent money moving to Ireland.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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