IFAs blast push for Scottish independence

Carl Melvin, managing director of Renfrewshire-based Affluent Financial Planning, said there were too many unanswered questions from the Scottish government, such as whether there would be a Scottish FSA and how the Financial Services Compensation Scheme would operate.

He said: “I am not sure Scotland on its own could function well as an economy. We also lack the political talent to run the country. If we had an independent Scotland when the Royal Bank of Scotland failed, the bank would have gone bust. It survived because of the collective strength of the UK.”

Alan Dick, partner for Glasgow-based Forty Two Wealth Management, said: “Independence would be a disaster. We would still have at least as much regulation but at a higher proportionate cost as we have got fewer advisers. Alex Salmond is a master of spinning his message to suit his own agenda.”

Graeme Mitchell, managing director of Scottish Borders-based Lowland Financial, said: “Independence is a joke. The trouble is we have got a smug Teflon-coated politician who seems to be able to get away with murder.

“It would not be in Scotland’s interest. From a business perspective even more so, particularly for me as I operate close to borders and have a number of English clients.”

Mr Mitchell questioned how easily Scottish IFAs would be able tap into financial services provided in the UK, such as platforms, if independence were to go ahead.

He said: “I cannot access investments that are in Europe, so would the likes of Skandia or Cofunds relocate part of their offices to Scotland so we can use them? I am proudly Scottish but when it comes to the bigger picture we are part of one body.”

Duncan Philp, senior consultant for Fife-based Macbeth Currie, said: “I would not want to break away from the union. It may be the case that we cannot conduct business until a new regulator is established.”

Keith Thomson, director of investment services for Dundee-based Blackadders, said: “The biggest issue with independence is where the money is going to come from. How would we fund the public sector and a new regulator? There may not even be enough advisers and companies left in Scotland to do so. It would be a major business disruption and expense.”

Edinburgh-based IFA Duncan Glassey, partner for Wealthflow, said independence could be a “wonderful thing” and allow Scotland to become a tax haven and financial centre such as Luxembourg.

He said: “If we were in control of our own tax rates I cannot see what would stop us from being a tax haven, attracting billions of pounds. Advisers would do nicely out of it.”