We are IFAs...you might have heard of us

With so much doom and gloom in the markets and the dreary financial headlines of late, it is more important than ever professional IFAs work together to ensure they are the trusted choice for consumers seeking advice.

This is particularly so given the reckless behaviour of some of the banks - mismanaging their businesses with little regard for the consumer and ignorantly believing their brands will be sufficient excuse to continue to bring customers back into their branches.

Let's face it, we are IFAs. We are not tied, multi-tied or fit into any of this so-called new breed of groups of sales or generic advice.

We act on behalf of the client and not on behalf of a bank or insurance company. We don't have to hit sales targets, product targets or focus on one particular product.

We don't rely on counter staff grabbing the unexpecting consumer and sending them across to see a sales person - with a nod and a wink on the premise of cheaper house insurance.

And because we are not multi-tied, we don't sell one particular protection product which is more expensive for the client to purchase, simply because the commission is loaded in our favour.

This so-called dual pricing practice is archaic and demeaning: there's the real price (which I'm not going to show you Mr Client) and there's the one specially arranged between us and the insurance company for our own benefit.

As IFAs we should be proud of the fact we always act on the clients' behalf and in doing so look to build long lasting, trusted, professional business relationships with them.

Gone are the days when a group of IFAs could coral themselves together and pretend they are a business, or a sole trader could act without any real regulatory oversight.

We operate in a regulated environment and businesses need solid foundations and infrastructure to last for years ahead, so we don't have a repeat of the failed businesses we all have seen in the past.

Sole traders and small firms aligning themselves to so-called 'service providers' are only leaving themselves wide open and inviting risk into their businesses.

They may believe they are doing everything correctly but, as we are continuing to see, this is not their skill set and they should operate within regulation if they ever expect to build any value and sell their businesses at the end of the day.

The regulator and consumer needs to see sustainable business models and a brand they can identify with. The consumer wants personal face-to-face advice.

But they must also be comfortable in the knowledge their adviser is supported by a stable company which ensures the adviser is both regulated and has a substantial firm behind him/her in case anything goes wrong.

These firms will rise above credit crunches and commission hand-outs from providers and the landscape will change to result in fewer firms who can provide real value to advisers and consumers alike.

Chris Smallwood is chief executive of national IFA 2Plan Wealth Management

scott.sinclair@incisivemedia.com