Why smaller advisers may face the axe

Advisers are at a critical stage in their fast-evolving development. The FSA's proposed changes look set to fundamentally change the way advisers work, requiring business efficiency, reduced costs and better systems. Unfortunately, for smaller intermediaries who do not have the benefits of scale, this may be the end of the road. Scale is now essential for advisers. Operational economies of scale can be achieved through back office integration, helping to reduce overheads and improve margins. Fixed costs can be reduced through efficient property and location management and integrated ...