NMG: Income fears easing for many IFAs

An increasing number of IFAs are reporting growth in their income, while more are also getting to grips with meeting the RDR's qualification requirements, a study suggests.

A survey of 449 advisers in Q4 2010 as part of NMG Consulting's IFA Census shows 41% are now reporting an increase in their income over the past year, up from 34% in the previous survey and a low point of 14% in 2008/9.

Meanwhile, on the qualifications front, 37% said they have now met the FSA's minimum Level 4 qualification requirements, up from 33% in Q3.

Remuneration issues also top the list of priorities for IFAs, with shifting the balance of business towards recurring income and charging fees still the main business intentions.

Despite the progress being made by many IFAs, David Burns, director of NMG, is concerned 26% have seen a drop in income over the past year.

He says: "For many IFAs experiencing lower income levels, this is not a recent phenomenon but the continuation of a longer term decline.

"We estimate that around half of this group will exit prior to implementation of the RDR.

"Analysis of advisers based on their progress along the RDR journey provides clear evidence that those who are most advanced are also the ones most likely to be thriving and this proportion appears to be growing. The opposite is also the case."