'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

Feel Good Friday: One Four Nine Group raises £40,500 for charity partner

Feel Good Friday: One Four Nine Group raises £40,500 for charity partner

Firm picks three new charity partners for 2026/27

Professional Adviser
clock 24 April 2026 • 1 min read
Deal Dive: 2026 kicks off with a slower start

Deal Dive: 2026 kicks off with a slower start

Deals announced in Q1 2026

Isabel Baxter
clock 24 April 2026 • 3 min read
What Justin Bieber is telling you about your clients

What Justin Bieber is telling you about your clients

‘In our world, success, true success, is delivering someone to their goal’

Chris Justham
clock 22 April 2026 • 2 min read