Advisers need to keep a lid on their costs

The parlous state of many UK financial advisers was recently highlighted by the publication of trading statements from Inter-Alliance and Berkeley Berry Birch, two of the UK's largest IFAs. Inter-Alliance shares fell by more than 70% on the day and BBB's by more than 19%. Both companies remain heavy loss makers and blame weak stock market conditions for their problems. In recent years, both companies have had to raise huge sums, mainly from insurance companies, to remain solvent. Inter-Alliance has raised more than £55m since the beginning of 2002 but, despite a recent £15m injection...