Transactional IFAs will die out even sooner than first thought due to a series of recent events, says Bradbury Hamilton.
Managing director of the IFA Sheriar Bradbury says while this business model has always been under threat, recent circumstances have created a “perfect storm” for the demise of sales-focused models.
He says the combined forces of pressures arising from increasing TCF requirements, uncertainty around the RDR, the possibility of a recession and stock market volatility will force out transactional IFAs.
Bradbury says: “With economic storm clouds looking like they will turn into a full blown recession combined with the recent turbulence and ongoing uncertainty in world equity markets the future is looking rather bleak for transactional IFAs.
“Add to this other business pressures such as TCF and the impending introduction of the RDR – and all it will bring – and we have a ‘perfect storm’ that could see a large chunk of the transactional IFA market disappear. From my own experience the smarter ones are selling-up before things get too bad.”