IFA Promotion finds an increase in 'robust' IFA firms since depolarisation
By Johanna Gornitzki
The number of IFA firms has increased by 10% since depolarisation came into effect, despite gloomy predictions by industry experts who thought the new regime would have the opposite effect.
The latest findings by IFA Promotion showed that the IFA sector is more robust than ever, with more people deciding to go down the independent route.
The research also revealed that more IFAs have decided to abandon the commission option, with the number of advisers offering fees-only advice increasing by 27% between September 2005 and September 2006.
According to IFA Promotion, 16% of consumers looking for an IFA said they wanted a 'fees-only' IFA.
Commenting on the research, David Elms, chief executive of IFA Promotion, said: "Over the last few years, the advice industry has rapidly changed. Regulatory changes coupled with more informed consumers, have led to IFA firms re-evaluating their business models."
Moreover, the study revealed that new areas of specialism and changing consumer demand have led many IFAs to study for additional exams.
While IFAs are required to hold minimum qualifications in order to provide financial advice, 52% of IFA Promotion's members now have IFAs with incremental qualifications.
Areas such as mortgages and pensions seem to be of particular interest to IFAs with more than 60% holding a mortgage qualification and 52% holding a retirement planning qualification.
This is up by more than 26% and 57% respectively compared with figures recorded last year.
On the protection side, there has been a staggering 231% increase in IFAs holding qualifications in long term care planning.
