A third of IFAs making a loss - Plimsoll

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A third of IFA firms are making an "unsustainable" loss because they are reluctant to pass on ever-increasing costs to customers, research by Plimsoll suggests.

With one in three companies in the IFA space in the red, Plimsoll warns many firms will "run out of cash" unless they refocus on their bottom lines and let consumers share the burden of escalating costs. "Whether its fuel, materials or wage demands every company in the UK IFA industry is being squeezed by ever increasing costs," says Plimsoll lead analyst David Pattison. According to the survey of 1000 advice firms, although more than half (52%) have seen gross margins fall in the last year, they are reluctant to pass on price rises for fear of losing customers to cost-savvy competito...

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