IFA guide to beating recession launched

A guide designed to help advisers successfully navigate through a recession has been launched by J.P.Morgan Asset Management.

The pack offers tips on how to cut costs, maintain profit margins, diversify client bases and improve client communication.

J.P.Morgan says the credit crunch has simply added to existing pressures on UK advisers through the Retail Distribution Review (RDR) and proposals to increase firms' capital adequacy requirements.

It points to research conducted by business analysts Plimsoll in November last year which suggested that, of the 1,341 IFA firms it surveyed across the UK, more than 160 would struggle to see out a recession.

"We recognise advisory firms are the lifeblood of our industry and it's appropriate that we ensure IFAs of all sizes are able to get through this challenging period," says Mike Parsons, J.P.Morgan Asset Management head of UK distributor sales.

"The economic outlook is challenging and is likely to remain so for some time, yet the need for high-quality, impartial financial guidance is greater than ever.

"At a time when advisory firms are already contending with a raft of headwinds, such as the RDR or proposed regulatory fee increases, navigating the financial crisis could well prove their toughest challenge yet."

The paper cites the "golden rule" for firms is not to cut costs that could visibly reduce the current quality of service offered. It also offers tips on how to protect cashflow, leverage platform technology, gather assets and review charging structures.

Tips on building a client base include incentivising existing clients and offering free topical investment seminars in a bid to maximise referral opportunities.

The guide can be downloaded here.

scott.sinclair@incisivemedia.com