Considering your next move? – becoming a restricted adviser is not the only option
Recent freedom of information (FOI) requests conducted by FTAdviser have raised concerns over the state of the UK financial advice industry, showing that the number of IFAs has fallen for the first time since the Retail Distribution Review and a total of 1,681 firms have cancelled their authorisations with the regulator since January 2015.
Restricted adviser numbers growing
The growth in restricted advisers has now leapt ahead of the growth in IFA numbers for the first time, according to the FOI requests, with the number of advisers providing restricted advice alone, increasing by 5.4% between 2018 and 2019, resulting in an increase in actual numbers from 11,098 to 11,699. FTAdviser commented: ‘The trend is likely being accelerated by the merger and acquisition activity of large companies and consolidators, many of which operate restricted advice business models.’
Pressures on advice firms
The figures suggest the growing pressures facing advice businesses, such as regulatory burdens and a contraction in the professional indemnity insurance market are taking their toll. There is also now an unprecedented challenge for the advice industry, with the uncertainty associated with the pandemic lockdown.
A recent survey on adviser forum, Panacea Adviser, which focused on the pandemic, found that 76% of the 166 responding firms believe there should be a regulatory fee holiday for advisory firms in 2020. The survey also found that 14% of firms believed their business will fail without access to additional funding.
Consider Sandringham
Many advisers have looked at what Sandringham can offer them and have chosen to join us. We know making a move can be difficult, so we have been working hard to make the decisions easier by being a progressively minded company, intent on doing the right things well, with the client at the heart of everything we do.
If you are currently a directly authorised IFA looking to move, don’t feel that your only choice is to become a restricted adviser. Firms and advisers can move to Sandringham as appointed representatives (ARs) or registered individual (RIs) whilst your clients will still benefit from your IFA principles.
If you want to see how Sandringham can help you to build a proficient, profitable and future-proofed business, why not contact us.
Sources
http://www.panaceaadviser.com/main/st15873/covid19+ifa+blood+test+results+now+through.htm
