New figures released by the UK Association of Professional Financial Advisers confirm that the British advice industry is in serious decline, with a 25 per cent reduction in planner numbers over 2012.
A new report released by the APFA confirms suggestions that many British planners exited the industry in the lead up to the FOFA-like Retail Distribution Review reforms.
“The new report confirms the scale of the drop in adviser numbers over the last few years,” said an APFA statement. “Figures newly released, compiled by the then FSA, reveal that in 2011 there were 41,000 investment advisers but that number fell to 31,000 by December 2012 – a drop of 25%.
“Of those 41,000 advisers in 2011, previous figures published by APFA showed that 26,000 worked for financial advice firms. That number fell to just over 20,000 by December 2012.”
In response to the shocking figures, APFA director general Chris Hannant called on the UK Financial Conduct Authority to take the diminishing size of the industry into account when determining fees.
“It is vital the amount the FCA asks from advisers is fair and proportionate,” Mr Hannant said. “Armed with these new statistics, we will continue to press the FCA to ensure that becomes a reality.”
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