An interesting article has appeared in FTAdviser today regarding a service set up by IFA Logic that allows IFA’s to buy and sell their client banks online. This potentially helps new advisers entering the market gain a firm foothold in which to build from, provides already established IFA’s with a way to expand their own client bank and also provides IFA’s leaving the industry with an additional financial incentive which could make all the difference when retiring or leaving the industry altogether.
The website – www.ifalogic.co.uk – will allow buyers and sellers of IFA client banks to meet and do business, stripping out the extra costs of acquiring an adviser business wholesale.
Peter Trotman, founder of IFALogic and an IFA recruitment specialist, said: “The IFA marketplace is undergoing radical change and upheaval which we believe will have a profound impact on the livelihoods of many existing practitioners.
“The advent of retail distribution review will present many challenges, altering the operational landscape of the industry and forcing major changes to the working practices of thousands of IFAs.
“It will also act as a powerful catalyst to those individuals or businesses wishing either to expand, retire or exit the industry altogether.”
Mr Trotman said recent estimates suggested 30 per cent of advisers could be leaving the industry in the coming years.
He said: “This would represent a huge aggregate client base coming on to the market, which would require servicing.”
Mr Trotman said the new website filled a gap in the market for both buyers – looking to expand the business – and sellers who were looking to realise value from client bases.
He said: “We now offer the perfect solution to both parties. This is a nationwide service designed by the market for the market.”
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