IFAs predict increased M&A as small firms 'find it harder to compete'

IFAs predict M&A activity will increase in the next five years

Isabel Baxter
clock • 2 min read

There will be more mergers and acquisitions in the IFA sector over the next five years as smaller companies find it harder to compete and costs increase, according to Investec Wealth & Investment.

The wealth manager's study with 100 IFAs and financial planners across the UK found nine in ten (90%) predict this trend will increase in the next five years. Of these, 32% predict a dramatic increase and only one in 10 (10%) expect the sector to stay the same as it is today. Around three quarters (76%) believe further consolidation will be driven by smaller IFA firms and wealth managers not being able to evolve as they need to meet the changing needs of clients. Other reasons cited include smaller companies finding it increasingly harder to compete combined with the increasing cos...

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