The Association of Professional Financial Advisers is calling on the Financial Conduct Authority’s fees paper to reflect the large fall in adviser numbers over the past year.
Last week, Money Marketing revealed for the first time the extent of the drop in adviser numbers post-RDR, with the number of IFAs and restricted advisers operating on the first day of the RDR 20 per cent down on December 2011 figures.
FSA estimates suggest there were 25,616 IFAs, tied and multi-tied advisers in December 2011, of which 21,696 were IFAs. This fell 20 per cent to an equivalent 20,453 advisers after the RDR deadline. The FSA is unable to give a split for IFAs.
An Apfa communication sent out yesterday said it was unfair to expect the remaining advisers in the market to pay the same level of fees that would have been paid previously.
Estimates based on the FSA’s recently published budget suggest that advisers could pay an extra 30 per cent in fees for 2013/14.
The FCA is due to publish its fees paper next Tuesday.
Apfa policy director Chris Hannant says: “The adviser market today cannot be expected to shoulder a burden based on its previous size. The FCA needs to ensure it factors the drop in advisers in 2012 into its upcoming budget and fees for financial advisers.
“It is vital for financial advisers that the amount the FCA asks from them is fair and proportionate, especially as they are already dealing with the costs of RDR.”