Hundreds of IFAs using 'dangerous' overdrafts - study

clock •

One in seven IFAs is in the "dangerous" position of using an overdraft as a permanent means of finance, a study suggests.

Analysis of 1,347 UK adviser firms by Plimsoll shows 189 use the debt facility despite the unprecedented financial turmoil of the last fortnight. The FSA says the practice is not against its IFA capital adequacy rules but Plimsoll warns many IFAs would be unable to afford it if banks began calling in any unsecured finance. The findings are part of Plimsoll’s latest study of the IFA market, which also found at least 164 firms are running a “dangerously high chance” of failure in 2009. “Of most significance, is the amount of independent financial advisers firms using an overdraft as a p...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Why wellbeing is integral to financial planning

Why wellbeing is integral to financial planning

First Wealth founder and managing director Anthony Villis

Isabel Baxter
clock 25 September 2026 • 1 min read
Talking to each other is the best way to boost financial confidence

Talking to each other is the best way to boost financial confidence

'There's a permission problem'

Sophie Hall
clock 25 September 2026 • 3 min read
Feel Good Friday: Royal London partners with disabled racing driver on equality initiative

Feel Good Friday: Royal London partners with disabled racing driver on equality initiative

Working with Nicolas Hamilton, younger brother of F1 champion Lewis

Professional Adviser
clock 25 September 2026 • 1 min read