In an announcement to the London Stock Exchange IFG said today: "The board of IFG, having given due consideration to the approach to the company, announced on 20 December, advise that due to the highly  conditional nature of this proposal, the board will not be proceeding further with it.
The identity of the bidder has not been revealed.
When the approach was received a statement from IFG said: "The board of IFG Group plc confirms that it has received an approach which may or may not lead to an offer to acquire the entire issued and to be issued share capital of the company.
"Shareholders should note however that the approach is highly conditional and preliminary in nature.
"Accordingly, no assurances can be given that a formal offer will be forthcoming or that any transaction will occur."
IFG owns James Hay Partnership, an IFP corporate member and one of the largest providers of Sipps in the UK, and Saunderson House, a chartered firm of independent financial advisers.
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Last week IFG group chief executive Mark Bourke revealed that he will be leaving next year.
Other companies owned by IFG include IFG UK Pensions Administration, IFG UK Independent Financial Advisory, IFG Ireland Financial Service and IFG Pensions, Investments & Advisory Services - Ireland.