FSA data shows advisers keep strong market share

Advisers have held on to a dominant market share of the retail investment product market in the year to March, as banks and building societies see their share of the market shrink.

The FSA has today published its product sales data report, which breaks down the sale of retail investment products between April 2010 and March 2011.

It reveals that personal investment firms, which includes IFAs and multi-tied advisers, sold 43 per cent of the 2.7m retail investment products sold during the year.

Banks and building societies saw their market share fall from 29 per cent in the year to March 2010 to 22 per cent, mainly due to a result of a loss of Isa business. Personal investment firms gained the share of the Isa market lost by banks and building societies.

Life insurers sold 12.5 per cent of product sales, while investment management firms had a 7 per cent share.

The FSA notes that sales via platforms are not included in the product sales data. As advisers commonly use platforms, the extent of the adviser market share is likely to be higher.

Some 66 per cent of retail investment products are sold on an advised basis, but this includes in branch advice from banks and building societies.

Pensions were the most common product sold, accounting for 36 per cent of total product sales. Personal investment firms accounted for 58 per cent of personal pensions sales.

Sipp business saw the most pronounced growth, with the number of Sipps sold up 34 per cent year on year. Occupational pensions business was up 24 per cent, personal pensions up 23 per cent and group pensions 16 per cent.

But sales of income drawdown and annuities have fallen by 15 per cent.

The FSA says the increase in pensions business is likely to be down to pensions switching, rather than new pensions investment.

Isas accounted for 22 per cent of total product sales, and decumulation pensions 13 per cent. Trusts and Oeics business was 11 per of total product sales, bonds was 8 per cent and occupational pensions 6 per cent.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. I suspect the RDR will fix that!

  2. don’t you just love it when the FSA say the increase in pensions business is likely to be down to pensions switching, rather than new pensions investment. No evidence just “likely”…guilty until proven innocent…..again.

  3. don’t worry to much Mr Banker, the FSA is fixing this problem for you……..

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