Hundreds of IFAs using 'dangerous' overdrafts - study

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...