This change is likely to have a significant impact on an industry already under pressure from changes in recent years. There are presently close to 50,000 people selling investment products in the UK which includes those employed by the banks and building societies. Around half of these operate as IFA’s, often as sole traders.
It is likely that for many of the smaller IFA businesses this will result in a sale or retirement and there will be fewer IFA’s in future. Inevitably this will result in the larger organisations surviving as smaller firms are taken over or go out of business.
Tim Corfield commented “Whether intended or not, this will leave much of the industry in the control of the banks and building societies and fewer people will receive financial advice in future”.
Written by Tim Corfield