In the last year I have attempted to buy five IFA firms, and when I started this process I was positive about the industry and the way in which advisers were being seen in a more professional light.
Twelve months on, I am still no closer to completing a deal. Three either ‘sold’ products with high up-front fees from one provider (he called himself independent), another had a run of Ucits complaints against him and, more recently, I uncovered a case of ‘double dipping’, where, by using a Sipp and a Tip, the adviser managed to take 2 per cent recurring fees, making an additional £80,000 per annum from his unsuspecting ‘loyal’ clients.
Talking about this to a friend of mine, he asked: ‘Why are you surprised?”. I looked back at him and he said: “That’s your industry.”
We all need to earn a living, and I know there are many decent, honest advisers out there, but there are certainly a larger number of bad ones than I ever imagined 12 months ago.
Dan Farrow
Director,
SBN Wealth Management,
Chelmsford,
Essex
