Free advice scheme could see IFAs in need of insolvency solicitors

Published on 26 May 2010 under category: legal

The government's proposed free finance advice scheme could see many independent financial advisor networks calling in insolvency solicitors, according to one expert.

The government's Money Guidance scheme will be funded through a social responsibility levy on IFA firms.

It was proposed following a consultation by the previous government, which found that people were in need of free independent advice to help them address cashflow issues.

Many people may still be considering contacting insolvency practitioners, as they struggle to hold their heads above water during the economic recovery.

IFA firms could be paying up to £7,000 a year to cover the levy.
Speaking to the Scotsman, Iain Wishart of Edinburgh-based IFA network Wishart Wealth Management said: "Costs of this nature will harm (IFAs) or force them to leave or merge with other firms.

"The irony is that high-quality IFAs will simply aim their sights at the wealthy and the very people who could benefit most from independent advice are ultimately going to be priced out and forced to go to the banks."

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.