New research shows that one-fifth of IFA firms in the UK are already being gripped by recession, pro...
New research shows that one-fifth of IFA firms in the UK are already being gripped by recession, prompting concern for IFAs in the protection market.
A survey carried out by research group Plimsoll found 135 of the 664 firms questioned have seen sales decline by almost 21% during the course of a year, and 40% of these were judged to be 'at high risk'.
However, just under a third reported growth above the industry median, with average growth of almost 19%. In addition, fewer than 10% of IFAs surveyed said they were preparing for a recession, and just under 30% said they are going for growth whatever happens.
Les Curson, director of specialist PMI consultant Nicles, said external factors were a key indicator of how the market would react to a recession. 'In previous recessions companies cut costs by delaying the expansion of their employee benefits, which has caused problems as the growth of company PMI has become static. But we have not seen any indications of this yet,' he said.
