Scott Gallacher: Why we should be concerned about consolidation

Market trend

clock • 3 min read

Scott Gallacher voices his concerns about ongoing market consolidation. Here he explains why consolidators and VI firms pose a 'real threat' to small advisers and consumers...

Rarely do I read a trade paper or e-mail without seeing that one IFA or another has been taken over by consolidators or vertically integrated (VI) firms. It's a seeming constant, despite the pandemic. Some might fairly view this as good news: a vote of confidence in the future of our profession. However, I suspect that it's simple economics. The potential cost savings and synergies, coupled with cheap financing, make take-overs a ‘no brainer'. Prices aren't always disclosed, and deals do vary, but from what I've seen a price of 2% of assets under advice (payable in stages over three y...

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

FCA to consult on pensions targeted support from December

FCA to consult on pensions targeted support from December

Consultation comes amid Advice Guidance Boundary Review

Sahar Nazir
clock 15 November 2024 • 2 min read
London Capital & Finance operated as Ponzi scheme, High Court rules

London Capital & Finance operated as Ponzi scheme, High Court rules

Now failed LCF raised £237m from 11,600 retail investors

Sahar Nazir
clock 15 November 2024 • 2 min read
Feel Good Friday: Square Mile charity quiz raises more than £16,000

Feel Good Friday: Square Mile charity quiz raises more than £16,000

Raises much-needed funds for Starlight Children’s Foundation

Professional Adviser
clock 15 November 2024 • 1 min read