Get real, get ready – ING consultant warns advisers
The paper titled Facing the new reality, authored by Strategi head, David Greenslade, claims the year ahead will be tough for many financial planning firms that have not adopted appropriate business structures.
Greenslade says in the report that many financial advisory businesses have already slumped to a “breakeven situation” with revenue predicted to drop by up to 20% during 2009 while expenses are also expected to increase.
“Many financial advisory businesses have already entered a financial recession of their own. Positive steps need to be taken quickly to prevent an advisory business moving from a ‘recession’ to a ‘depression’, or worse to failure,” the Strategi paper says.
The report says businesses that depend on a single source of revenue, particularly investment-only firms, will suffer most in the year ahead with many financial planning practices picked to move from profit to loss in “a matter of months”.
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