Kent-based IFA Brunning Newton Houghton (BNHL) is preparing to lose hundreds of clients as it seeks to cut costs in 2009.
Managing director David Brunning says the company will be writing to up to half of the 2,000 clients it considers "unprofitable" and expects to lose "around 80%" of them.
He says customers will be offered an ongoing service on a fee-basis and, if they refuse, BNHL will terminate its contract with them.
"It's something we should have been doing over the last couple of years but the economic climate has really brought it into focus," he says.
"It is costing us simply to have them on the books. We're printing leaflets for customers and are going to be distributing them in two week's time. It saves us money and is also treating customers fairly (TCF)."
However, Brunning says the firm, based in Tunbridge Wells, is looking to expand and is in consolidation talks with one company that, if successful, will double its adviser base to six.
"We are looking to consolidate this year," he says. "But only on the right terms."IFAonline
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