Debt-heavy IFAs 'serious risk' to healthy competition

According to a 2009 forecast for the UK IFA market by Plimsoll, more than 160 firms are now deeply indebted after investing heavily and are “desperate to keep busy”. The report suggests companies with unhealthy balance sheets could be forced to up the cost of their services, potentially forcing other firms to react and creating an unfair environment for consumers. “If 2008 has taught us anything,” it concludes, “it is that using other people’s money to run your company is a risky business.” Meanwhile, up to 5,000 industry jobs could go, the study suggests, as firms look to reduce cost...