'Forensic economists' find IFAs generate just 2% industry revenue

Scott Sinclair
clock

Independent advisers generate just a tiny portion of the total net revenue produced by the industry yet contribute a far larger chunk of its annual costs, an economics team has found.

The initial estimates of a ‘forensic economics' business hired by AIFA to scrutinise the FSA's budget found the net revenues of IFA firms represent about 2% of the income of the financial markets regulated by FSA. However, it concludes advisory firms pay 25% of the regulator's total costs. "IFAs are therefore burdened with a disproportionate and unfair share of the costs of regulation which are ultimately and inevitably met by consumers," AIFA policy director Andrew Strange says. The findings of the forensic economists will form part of AIFA's response to the FSA's consultation on ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Reeves promises to not 'return back to austerity' in pre-Budget message

Reeves promises to not 'return back to austerity' in pre-Budget message

'Biggest drive for growth in a generation'

Michael Nelson
clock 26 November 2025 • 1 min read
Nearly half of advised HNW clients unaware of CGT allowance

Nearly half of advised HNW clients unaware of CGT allowance

Charles Stanley finds

Sahar Nazir
clock 25 November 2025 • 2 min read
CII launches vulnerability guide

CII launches vulnerability guide

For insurance and personal finance

Isabel Baxter
clock 25 November 2025 • 3 min read