JP Morgan predicts the number of financial advisers will drop by a further 20 per cent to under 20,000 because of the RDR.
Speaking at a Lansons Communications Future of Financial Services conference yesterday, JP Morgan head of UK retail Jasper Berens said the number of advisers has already fallen by 4,000 since the RDR was announced, with thousands more set to drop out in the coming years.
He said: “We believe 15 per cent of advisers have disappeared over the last five or six years since the RDR was declared, down from 27,000 to 23,000. We think that probably another 20 per cent of advisers will drop out of the market.
“But if you think there are 150,000 practising solicitors, 140,000 practising accountants and only around 20,000 advisers there is clearly still a strong demand.
“If any university leaver is thinking about a career then clearly financial advice is one they should be getting into. They are better qualified, more sophisticated, advice is in good shape and their interests are more in line with clients. It is one of the great success stories of the RDR.”