Advisers are being urged to steer clear of investment management and stick instead to building relationships with their clients.
Adviser group IFAlliance says the IFA market is in a period of transition, with the combined effects of the economic downturn, Retail Distribution Review (RDR), minimum qualification requirements and new capital adequacy rules making it very difficult to transact business.
"IFAs are not stock pickers or asset allocators," managing director Andrew Perkins says. "They are best at building relationships with clients and this is what they should stick with doing."
Perkins says IFAlliance can help firms "prepare and navigate" through the RDR and other FSA-imposed requirements, such as treating customers fairly (TCF).
The organisation was formed in 2005 and is designed to bring together professional IFAs "to pool their specialist knowledge and experience".
It allows members to keep their independence and Perkins says it has been established as an alternative to a network, selling a business, or being "swallowed up" by a big company.
"Many IFAs have a poor regard for networks," he says. "But this is not a network. It is what it says on the tin - an alliance of professionals with a high regard for each other working in a federation."
For more information on joining IFAlliance, please visit www.ifalliance.co.ukIFAonline
Three years at Wells Fargo
Effective from 9 December 2019
One firm with permission suspensions left
Continuing the Architas education series for clients.
Needs to apply for authorisation