Many advisers are being forced to take second jobs to make ends meet amid the current market downturn, high-profile IFA Martin Bamford claims.
Bamford, the Informed Choice joint managing director, says today’s economic turmoil is having a harsher impact on the adviser profession than many observers realise, with as many as half of the UK’s IFA firms in difficulty.
He says advisers focusing solely on the protection or mortgage areas are being “massacred”.
“I have spoken to a lot of advisers lately and I think the reality is worse than many people believe,” Bamford says.
“I heard some have even had to take a second job, that’s how bad it is out there.”
Bamford also feels November’s RDR recommendations will be a “double whammy” for a lot of ailing advisers.
“Those who are already struggling will find they can’t change their model to fit with what is expected in the RDR,” he says.
“I think a lot of older advisers may bring retirement forward a couple years. The RDR could actually get rid of a lot of dead wood in the profession.”
Bamford says Informed Choice is currently in “very good shape”, having already made the move to a more fee-based approach.
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