Adopt and modernise, sell up or merge.

There’s much to think about for IFAs in the coming months, particular for those of a certain age that are perhaps considering retirement in the next few years, or least realise that at some point they will have to retire.

The new Consumer Duty rules, have changed the landscape yet again, another level of regulation, with its attendant costs and additional work load, coming at the same time as the focus is on not increasing the cost of advice, and giving good value.

The smaller IFA has always been hamstrung by regulation, particularly the costs involved, these are harder to absorb than for larger firms, professional indemnity premiums alone can account for a reasonable chunk of fees earned. Most IFAs pride themselves on the good advice and service they provide, they do not need to be regulated to provide it, treating customers fairly and helping to achieve “Good outcomes” is inherent.

Regulation aside, of a bigger concern to most IFAs, is how to stay relevant in the coming years, even the short window of the next 5 years is a challenge as technology is advancing at a very rapid pace, and now there’s the threat of AI-powered software making “expert financial advice affordable and accessible to all”.

Is this the future ? Well, I doubt it, but it is obvious that technology is playing an increasingly important role in the running of a practice, and IFAs are having to increase their spend on it just to keep up, the use of tools such as digital fact finds and cash flow modelling to name just two are becoming common place.

So, adopt and modernise, sell up or merge. These are the options as we see them at Harrison Spence, doing nothing is also a choice, but if you want to develop your business or at least receive a decent offer for it when you come to sell, we suggest taking some action this year.

What ever you decide to do, we can help you, if you want to stay in the game and modernise, we can help you with such software as digital fact finds. These can be run in conjunction with your existing software. We can also show you ways of increasing revenue which ultimately will lead to a higher offer when you do come to sell. Our consultancy department will be pleased to help you with this.

If you are thinking of selling or merging, or even streamlining your book of business in the next year or two, please do talk to us, we are specialists in selling IFA practices, and can help achieve that all important cultural fit to ensure that your clients are looked after in the way you would expect.

If you have received an offer from another intermediary, we will be happy to give you an unbiased opinion, and at least point out any other options that may be available to you.

To discuss your own circumstances in strictest confidence, please do give us a call. As always, any first meeting is always at our expense.