What are you worried about ?

What are you worried about?

The myriad pressures facing IFAs have led some to conclude that the so-called lifestyle advisor is an endangered species. This is a great shame as having been one myself for part of my career, I know that the small independents generally give excellent advice and are the “Trusting face” that this industry will always need.

But while increased regulation and profitability pressures are culling lifestyle IFAs, extinction is by no means inevitable when the right strategy is applied.

Lower-value clients tend to be spoken of in equally bleak terms, as doomed to fall into the “advice gap” and be cut off – perhaps permanently – from much-needed financial advice simply because they aren’t profitable enough. Yet here again, even the harshest business conditions can be overcome.

The key to survival is adaptation and change.

So, what’s worrying IFAs, and perhaps making some consider selling up and calling it a day. Well according to an article in Citywire published a few days ago, it’s certainly not Consumer Duty. They cite a recent survey commissioned by Aviva of advice firms which found that just 20.1% of the 1,003 advisers who responded are worried about the impact of the regulator’s reforms on their business.

The biggest worries mentioned by the respondents include:

·         Inflation
·         Cost of living/energy crisis
·         Recession
·         How to remain profitable
·         Market uncertainty
·         How to attract new clients

Well, I’ve certainly had discussions with some IFAs who are worried about Consumer Duty and later in the same article it is stated.

“It is possible that some firms believe they can fly under the radar. Yet the FCA singled out small IFAs in a hearing with the Treasury committee just last week.

‘We will be interested in how [consumer duty] is supervised, how it is enforced, the degree to which firms actually implement, particularly small firms, the duty, and the intersection with financial advice,’ said FCA chair Ashley Alder.”

I have mentioned in previous articles that I believe that smaller IFAs will see the biggest impact from the Consumer Duty as they have the least resources to deal with it.

How can we help you?

As well as dealing with Mergers & Acquisitions, we have a “Full service” Consultancy team that can help your business, believe me, if  you are feeling overwhelmed, selling is not your only option.

If you want to fight back, we can help you with Consumer Duty and a whole host of other issues, such as improving client communication, how to stay profitable, and how to increase profits.

We are currently helping IFAs of all sizes who want to stay in the industry, grow and make improvements to their business. We discuss, we listen to what you would like to achieve, and when we deliver a plan, we’ll actually help implement it as well.

I would point out that business improvements generally lead to a higher sale value when you eventually do decide to call it a day.

As independent consultants to the retail financial services industry, we are well placed to help you explore your options, please do get in touch for a confidential chat of how we can assist you.