46% of IFAs in a network generate first commission in four weeks

Forty-six per cent of independent financial advisers (IFAs) that join a network generate their first commission within four weeks, according to research by ValidPath.

The group also said that most IFA members will typically generate their first commission within six weeks of receiving their authority to advise (ATA).

Firms that have been within ValidPath’s network since 2023 have achieved, on average, 112 per cent of their annual projection by their second year, with figures also showing that established firms then go on to record an average year-on-year commission growth of 14.22 per cent.

The data also showed that in a market where IFAs have increasing choice and mobility, they are committed to being part of a network.

The network’s research revealed that more than half (54 per cent) of firms that were active in 2016 remain ValidPath members today, while one in eight (13 per cent) are still members more than 20 years later.

ValidPath group operations director, Tim Riseborough, said: “A common myth in financial advice is that independence means self-sufficiency, or that you can’t be truly independent inside a network.

"In reality, the most resilient and successful independent firms are those embedded in strong networks that provide structure, expertise and shared learning, while preserving autonomy.

“At a time when IFAs have more choice than ever, our longstanding member relationships show that when firms find a network that genuinely supports growth, compliance and community, they stay.

“Amid consolidation and increasing regulatory pressure, IFAs are redefining what ‘independent’ really means. Rather than choosing between freedom and support, advisers are gravitating towards models that offer both.”

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