Am I alone in wondering what real levels of new business are being done in financial services industry at present?
It seems to me that we are going the same way as UK Ltd at the moment. There has been a growing service industry comprising of regulators, compliance officers, networks and various personnel who create no new business for providers and no new investment in equities or similar markets.
Advisers are steering clear of pensions for a number of reasons such as low commission, savings plans linked to life assurance being deemed dodgy and current equity market uncertainties and bad press pushing potential investors into the residential property market at its current high levels. Therefore I presume little new business is being introduced.
I was pleased to hear recently however that a large number of those individuals who prefer to police us – compliance officers – are being put out of work. I do not know whether it is lack of new business or the tight restrictions now firmly in place which is bringing that about but that is the thin end of the wedge for the industry.
Unless the public are encouraged to provide for their own future and advisers are given the credit and encouragement to advise on and offer the products which are still essential and generally beneficial to their wellbeing, more jobs will go.