Small adviser firms worst hit as industry contracts-research

Katrina Lloyd
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Firms with only one or two advisers were the worst hit during the six month period to mid April 2009 as economic pressures took their toll, according to new research from threesixty.

The support services group found the market for firms with investment permissions contracted by 5.6% from 11,646 to 10,991 over the six months. This included both directly authorised firms and those within networks. However, most significantly hit were firms with one or two advisers, which shrunk ahead of the average at a rate of 6.4%. Firms with more than 24 advisers dropped by just one – from 98 to 97 during the same period. Phil Young, partner at threesixty, comments: “Whilst there are various reasons why small IFA businesses are reducing in number, it is a trend which we expect to...

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