The Association of Independent Financial Advisers (AIFA) has launched a service for retired IFAs to help them deal with their continued responsibilities to clients once they have exited the market.
Meanwhile, Personal Touch has launched two succession schemes which will allow retiring advisers to sell their business onto the network and receive an ongoing income.
AIFA believed it was necessary to highlight to advisers that the responsibility for the advice they gave in their career did not finish once they have left the industry, with the potential for their liability to extend for up to 15 years.
Fay Goddard, deputy director-general of AIFA, said: “We have found that there is an increasing demand from retired IFAs who do not have the protection of limited company status for guidance in this area.
"That is why we are providing this service. IFAs often don’t know what they should do or how they should handle complaints, or enquiries relating to past business.”
AIFA’s scheme has promised to offer advisers access to updates on relevant news on legislation and regulation that could affect them, a referral service to specialist advice and access to its Viewpoint on Succession Planning.
Membership of the scheme costs £250 per year.
With its schemes, Personal Touch believed it was offering a solution for intermediaries to overcome the difficulties and stress of selling on a business when they chose to retire.
Its plans offer either a lump sum or an ongoing income from business written using that client bank for those brokers wishing to retire.
For those advisers looking to phase their retirement, Personal Touch also announced a scheme which allowed brokers to become a registered individual within the network, which it claimed would reduce costs for intermediaries as they work fewer hours.
Mike Allison, managing director at Personal Touch, commented: “Brokers will consistently look for opportunities to maximise their income at retirement and increasingly these are limited for them.
"At a time when it is difficult for IFAs to sell their businesses this provides a guaranteed income and takes the uncertainty out of the valuation.
“Every day IFAs help plan the retirement for their clients but are sometimes left facing uncertainty in the value of their own businesses simply due to market conditions – these schemes eradicate that uncertainty as well as providing ongoing income streams for new business.
“They also facilitate the ongoing servicing of clients demonstrating that they are treating customers fairly in their own retirements.”
Michael Brill, director of Baronworth Investment Services, said: “Putting aside finances, it’s very much a personal decision as some people want to retire immediately and go sit on a beach, while others want to reduce the number of days they work. Personally, I wouldn’t want to retire because I love my job, I enjoy the buzz and it keeps me going.
“However, until you go to the grave, you are responsible for the advice you give and hopefully, in the next couple of years, there will be a ceiling put on how far down the line someone can claim against you.
"I just don’t think it’s fair that someone can sue you for advice you gave 15 years ago.”
