Regulation could spark 7% drop in IFA numbers

The research indicates that an "increasingly stringent regulatory environment" is the main reason why many in the financial services sector are looking to sell their businesses.

51% of the IFAs and wealth managers surveyed said that this was a ‘very important’ factor for wanting to sell. This is followed by 36% who said the same about the growing pressure on costs, and 34% who cited increasing investment which is now needed to operate in such a heavily regulated infrastructure.

Mark Stokes, group communications director for Succession Wealth, said: “We have invested heavily in our brand and this has involved extensive change to all aspects of our internal and client-facing communications. It has been an extensive process and an essential part of our future strategy as a growing and sustainable business. We are in a very strong position to build on our growth and capitalise on the opportunities that lie ahead in what is becoming an increasingly rigorously regulated market.

“We recognise that operating in the wealth management sector is tougher than ever before. As a result, we are seeing more enquiries both from potential clients and from companies looking to sell to us in order to take advantage of our proposition and our economies of scale.”