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Financial adviser numbers up 6% since RDR

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The number of financial advisers has increased 6 per cent since the start of the RDR, from 20,453 to 21,684, as more advisers pass the new required qualifications. 

The total number of advisers, including bank advisers, IFAs, restricted advisers, discretionary advisers and stockbrokers is up 5 per cent, from 31,132 to 32,690.

Money Marketing revealed in March that the number of IFAs and resticted advisers operating on the first day of the RDR was 20 per cent lower than the number estimated by the FSA to be operating the previous year, from 25,616 to 20,453. The number of bank advisers fell by 44 per cent in the same period, from 8,658 to 4,809.

The new statistics, as of 31 July, show the number of IFAs and restricted advisers has increased 6 per cent since then. There is no breakdown of the number of IFAs. 

The number of bank and building society advisers fell another 4 per cent in the same period to 4,604.

The number of discretionary fund managers shot up 24 per cent from 1,435 as at the end of December to 1,784 as at the end of July. Over the same period the number of stockbroking firms rose 11 per cent 2,043 to 2,267.

FCA director of supervision Clive Adamson says: “Today’s figures show that those looking for financial advice still have plenty of options open to them. What’s more, by establishing standards across the industry we are helping to build confidence by reassuring consumers and raising the profile of the adviser profession.”

Table 1: Adviser numbers as of 31.07.13        
  Fully Qualified Partly Qualified Total  
Financial Adviser 21258 426 21684  
Bank and Building Society 4311 293 4604  
Stockbroker 2212 56 2267  
Discretionary Investment manager 1752 32 1784  
Top 4 categories TOTAL 29533 807 30340  
Other 2156 68 2221  
Waivers     129  
Total 31689 875 32690  
Top 4 categories as % of total 93.00% 92.00% 93.00%  
         
Table 2: Adviser numbers (estimated 2012 and actual end 2012 and 2013)        
  Estimate in summer 2012 Actual 31.12.12 Actual 31.07.13  
Source RS Consulting FSA FCA  
Financial Advisers 23787 20453 21684  
Banks and Building Societies 6655 4810 4604  
Stockbrokers 1202 2043 2267  
Discretionary Investment Managers 875 1435 1784  
Other 2554 2269 2221  
Waivers N/A 122 129  
Total advisers 35073 31132 32690  

Source: FCA

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Comments

There are 19 comments at the moment, we would love to hear your opinion too.

  1. Lies Damm Lies and Statistics !

    6% increase is nothing to be proud of, considering the overall loss to the industry. The industry has lost a lot of experience and would certainly not be my recommended career for anyone.

  2. When I went to school an increase to 21,684 from 21,258 was 2% and not 6%.

  3. FCA director of supervision Clive Adamson says: “Today’s figures show that those looking for financial advice still have plenty of options open to them
    Yep Clive
    a population of 62 Million has 35000 options
    Plenty of choice there.
    Keep kidding yourself mate, at least it gives us a laugh.
    Agree with first post. Do NOT choose FS as a career & vote UKIP.

  4. Words and figures differ 15th August 2013 at 11:14 am

    21,258 to 21,684 is 2% not 6% !!!

    Can someone nip out and buy Steve a calculator or publish the correct data from the report.

    I think the report states it’s gone from 20,453 to 21,684…..but I am just a financial adviser, so what would I know.

  5. And exactly what career would anon be entering. This continued negativeness must have an impact upon your clients, your staff etc etc.

    Have the courage of your convictions and leave the industry

  6. Quote from the FCA Final Notice dated 5/6/13 when fining Sesame:

    “Sesame is an IFA network with advisers throughout the UK. As at June 2009 it had approximately 1,040 ARs who were able to advise on designated investment products amounting to 1,637 individual advisers who offered investment advice (representing 9-11% of the UK financial adviser population).”

    Taking the lower figure of 9% gives an adviser population of 18,188 in June 2009.

    I’m confused…

  7. 6% increase in advisers or is it 6% increase in advisers who have now reached level 4 when at start of RDR they had not.. FS is no longer a life time profession no one intheir right mind would start such a career as it is going nowhere

  8. I wonder just how many of the number of the financial advisers quoted are broker consultants/regional managers, sales staff etc at providers who had to get qualified to keep their jobs, but not actually advising clients? Does anyone now this? It is however a good piece of spin in my own humble view.

  9. it may be the case that the ‘spike in numbers’ is due to CF30’s gaining level 4 quals and getting over the line! In other words debadged advisors now getting their exams and SPS’s etc.

    IMHO

    still not noticing long queues of mass affluents at my door.

  10. I personally know of advisers who passed their level 4 qualification mid-December but were de-registered by their networks for whatever reason and they then had to be re-registered in January 2013. No wonder the figures are all over the place. The 6% increase will most likely be those that had to be de-registered and have since re-registered or new advisers/support staff who were working towards the level 4 qualification. Let’s see what the figure is after 31st December this year as I personally know of several advisers who are getting out of this industry because of the increased costs and nonsense compliance/regulation. (Their words) This 6% adviser increase since RDR spin is only half the story. Watch this space….!!!

  11. O.K. there are 21,000 with the qualification.
    The question is how many of these are actively advising ?
    My guess is about 70% ish as there are many back office staff and para planners with the new qualification.

  12. Who really cares? The truth is, there won’t be many advisors left within five years.

  13. Who will believe any figures that this mob comes up with?

    The RDR statistics were as crooked as a snakes elbow yet they paraded them as fact in the same manner as a craven politician cowering before Paxman.

  14. Your right Paul, also remember most stock brokers and fund managers are also have cf30.

    Look at Neil woodford and the rest of them!

  15. @Archie Tect
    yes, I am afraid the industry has lost trust in the regulator.
    They will need to regain it before we believe a word.

  16. Roman Duzinkewycz 16th August 2013 at 2:06 pm

    I don’t believe any of these figures – as always, lies and more lies – who gets paid to write this crap?

  17. Is it too rude to suggest these figures are an outright utter lie?

    Dip pfs support staff may contribute to figures, plus you need to look at say dec 2011 compared to now rather than New Year’s Eve 2012 when people were redundant.

    How many sacked bank assurers will be trying to make a self employed role work and beginning to realise its costing them to go to work.

    How many advisers will have hung up their boots this year.

    I do not believe with banks and companies closing their advice arms that there are more advisers now than last year.

  18. just another load of spin for the FCA to put in their annual report.
    They will probably award themselves a pay rise/bonus for such a sterling effort.
    Young people if you are reading this do not choose FS as a career path. To do so is to open yourself up to an unelected unaccountable quango, which ignores the law of the land. Choose something where you can be creative rather than stifled to death.

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