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

Feel Good Friday: One Four Nine Group raises £40,500 for charity partner

Feel Good Friday: One Four Nine Group raises £40,500 for charity partner

Firm picks three new charity partners for 2026/27

Professional Adviser
clock 24 April 2026 • 1 min read
Deal Dive: 2026 kicks off with a slower start

Deal Dive: 2026 kicks off with a slower start

Deals announced in Q1 2026

Isabel Baxter
clock 24 April 2026 • 3 min read
What Justin Bieber is telling you about your clients

What Justin Bieber is telling you about your clients

‘In our world, success, true success, is delivering someone to their goal’

Chris Justham
clock 22 April 2026 • 2 min read