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.”
Will Australia see a similar decline? Have your say below.
A BDM from a bank owned group showed me some stats that FP numbers have been static for years (after taking out the general advice ARs) so effectively on a per capita and some would say “need for advice” basis, the decline has been underway for some time – even pre-FOFA. No doubt will accelerate.
Not sure if education is the cause though, think that is a distracting sideshow. Its more likelt=y part of the corporatisation of the economy – that big business is preferable to small in delivering goods and services. This trend is encouraged by goverments of both persuasions and younger generations have immnense faith in “brands” so shows no sign of abating.
It will DEFINITELY happen exactly the same here in Australia.
The education floggers lie the FPA & Kaplan will see that their decades of insisting on ruining the industry for advisers & clients by unfair course flogging & pointing to education (surprise surprise) as the be all / end all answer to issues, will in the end kill their own business when most of us leave & the remaining few QUESTION the need for these fools & their memberships.
Good night, lights out.
Wonder how long it will take for action before anything happens here ?
i will take a stab in the dark numbers will drop by 10 to 15% next 12 months when the banks realise the money has gone in Financial Planning, Industry funds will try and prop up, but then realise their FPs are dead weight because of lack of service and advice offering to profit
It will happen here, of of today all smart financial planners are reconsidering their futures. The ISN want the market to themselves. shbg4
This will happen here, next 12months if the Communists regain power i guarantee we will see this happen. Lets see how all the call centres handle our clients
Interesting article