Financial advisers are increasingly worried about the value of their business following the implementation of FOFA, according to a financial services business consultant.
Seaview Consulting has seen a growing number of inquiries about practice value in recent months, according to a statement.
“It is my view that in the short term the trend for values will continue to be down across the board,” said Seaview director Bob Neill.
“It is important to understand that value is a measure at a point of time and it is based on a view of what is going to be delivered in the future.
“The more certain the outcome, in other words, the lower the risk, then the greater the price someone may be willing to pay for the future results. Inversely the less certain or greater the risk then the less someone will pay.
“This is a fundamental that simply does not change and should be kept in mind when determining what the impacts of change are going to be”.
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