IFA numbers to shrink 10,000 by 2013 - Ernst & Young

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Thousands of IFA firms could go out of business, sell-up or merge by 2013 due to the economic downturn, according to Ernst & Young.

In an analysis of all firms active in the life and pensions sector, Ernst & Young paints a bleak outlook, but says firms that make necessary adjustments to their business can prosper in the future. Firms that fail to reform their businesses and adapt to a changing environment will fall behind in a "race for survival" during this difficult year. Ernst & Young's head of insurance, Shaun Crawford, believes things will get worse for life companies and advisers in 2009, many of whom have entered the recession in a relatively 'lean' position compared with previous downturns. He suggests poorly...

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