More than 40 regulated investment advice firms cancelled their Financial Conduct Authority authorisation in April, up from 14 firms in March.
The monthly Matrix Solutions observatory report, compiled from the FCA register, shows there were 23,582 firms with investment permissions in April. This is down from 23,538 firms the previous month.
The number of registered individuals with investment permissions follows a similar pattern with 187 dropping out in April compared to just 86 in March.
From December to April, the number of authorised investment firms has decreased by 385, from 23,923 to 23,538.
In the same period the number of registered individuals decreased by 3,994, from 133,414 to 129,420.
Matrix Solutions chief executive Ian Beaumont says: “It will be interesting to monitor the situation closely in order to determine whether we are likely to see a significant number of advisers leaving the industry.”
Highclere Financial Services partner Alan Lakey says: “The true figures for firms leaving the industry because of the RDR have yet to come through as many have tried to keep going but business is down on last year and there will be a number of firms that decide it is not worth it land leave in the coming months.”