Justifying her switch to Capital Planning (CP) from running her own business, IFA Dawn Slater is bei...
Justifying her switch to Capital Planning (CP) from running her own business, IFA Dawn Slater is being quoted by Tenet Group – which owns CP as a subsidiary – as saying that "the future of small, directly authorised IFAs was questionable"
Tenet says the comment is Slater's own and does not reflect an official position of the group, but adds that CP has received an increasing number of approaches from IFAs either looking to exit the industry or secure their futures by tagging on to a bigger firm.
In fact, Tenet's purchase of CP was motivated partly because of the outlook for a growing number of deals involving independent IFAs coming on board, the group says.
"Capital Planning is proving to be a popular route," Tenet says.
Slater blames a growing regulatory burden, PI problems and increasing administration costs for the decision to stop running her own practice.
However, saying that there is no future for smaller IFA operations is likely to be seized upon by those already critical of the way the regulator and others are pushing the agenda of change.
Tenet says its official view is that IFAs will be needed in future, but that it has no comment on Slater's suggestion that the future belongs only to larger firms, networks, and bancassurers.
Paul Bruns and Elaine Parkes
Record numbers of people aged 90 plus
From 3 to 10 October
'Integral part' of the financial planning process for many advisers