Amid all the challenges facing small and medium-sized independent financial advisers (IFAs) – from consolidation and stringent regulations to increasingly competing market pressures – one thing is certain: their resilience deserves to be applauded.
Abraham Okusanya, chief executive of Timeline, has led the charge in delivering this admiration for smaller IFAs, praising their fortitude despite facing what often seem insurmountable obstacles. Whilst players from all parts of the industry – advisers, insurers, platforms and providers – have had to face market pressures, smaller IFAs have been hit the hardest.
The financial advisory landscape is constantly changing, with new players emerging, better technology and customer trends dramatically shifting with lightning speed. On top of that, demand for the advice of financial advisers has lessened as customers have unsurprisingly become more cost-conscious in a post-pandemic world.
Perhaps the most daunting challenge for IFAs is the challenging of having to keep up with an ever-changing set of regulations and laws. With the government introducing new rules and regulations at breakneck pace, it can be difficult for IFAs, especially smaller ones, to keep up and remain compliant.
Yet, above all the difficult changes and regulations, small IFAs have come out the other side with their businesses and reputations in tact. Timeline’s chief executive highlighted this achievement, stating that “the small IFAs could be seen as the embodiment of the phrase ‘work smarter, not harder.’ Despite facing what are often daunting obstacles, they’ve managed to stay afloat and remain successful.”
It’s not to say that the going has been easy – small and medium-sized IFAs have had to stay mindful of their customers’ needs and evolving trends. But, through hard work, smart decisions and a ‘work smarter, not harder’ mindset, they’ve managed to remain competitive and give customers the peace of mind and financial confidence that they need.
Not only that, but these small and medium IFAs have also proven themselves as adaptable and able to ride out shifts in market conditions. In the face of the ever-changing industry, IFAs have managed to adjust and find new ways to engage with their clients, whether it be through adopting new technology, finding ways to provide value or connecting with customers through new channels.
There’s no denying the seemingly overwhelming pressure small and medium-sized IFAs have faced, but their success and resilience is something to be admired. Abraham Okusanya said it best: “Countless small IFAs have overcome both the historic and more recent changes within the industry, and continue to prove their worth.” We should all take a moment to recognise and applaud their success.