One in ten IFAs could disappear if economy worsens

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One in ten IFA firms could go out of business if the UK's current economic problems continue, according to industry analysts Plimsoll Publishing.

A study into the impact of the current economic crisis on financial advisers found one in four are already reporting declining sales. Plimsoll surveyed over 1300 IFA firms in the UK to discover how the economic downturn has affected their business, with worrying results. A quarter of firms surveyed reported falling sales, while half have seen margins fall in recent months, with 19 firms running at a loss. Some firms have also increased their needs for short term finance, according to the report, which Plimsoll says is particularly dangerous at a time when the availability of finance i...

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