Hundreds of former bank advisers are joining major distributors following the exit of banks from the mass advice market, Money Marketing can reveal.
A number of major banks have pulled out of mass market advice in the last two years, including Barclays, Lloyds Banking Group and Santander.
FCA figures show that between December 2011 and July 2013 bank and building society adviser numbers are down 47 per cent, from 8,658 to 4,604.
The number of financial advisers dropped by 14 per cent between July and December 2012, from 23,787 to 20,453.
St James’s Place says it has taken on 150 former bank and building society advisers during 2012 and 2013, while Intrinsic Financial Services – not including Positive Solutions – has taken on 100 this year.
Chase de Vere says it has recruited some advisers from banks and building societies this year, but declined to say how many. Chase de Vere head of communications Patrick Connolly says: “We have turned down far more than we have accepted to protect the overall quality of our adviser force.”
Investment Quorum chief executive Lee Robertson says: “There are a lot of former bank advisers who have nowhere near enough technical knowledge to join an advice firm. But there are some gems out there and we have taken on two former bank advisers who we are very happy with.”