New figures from the FCA show that the percentage of restricted financial advisers within the sector has dropped since last year.
Data from the regulator’s Financial Advice Market Review last June looked at the advice on offer within the sector, finding that 83 per cent of firms were providing independent advice, and 15 per cent were restricted. Two per cent of firms provided both types of advice.
A Freedom of Information request by Money Marketing columnist Paul Lewis shows that as amount of financial advice firms has dropped from 5,746 last June to 5,270 as at 26 February 2018, now 13 per cent provide purely restricted advice.
Two per cent continue to provide a mixture of both.
The amount of firms providing solely restricted advice was 546, or 13 per cent, well behind the 848 firms who were providing restricted services last June.
However, the data also shows that the proportion of individual staff advising on retail investments is still split equally between independent (43 per cent) and restricted (42 per cent) advisers.
Along with the lack of measurable growth in the restricted market, the regulator’s review of advice suitability from 2017 shows that initial charges for independent advice remains lower than for restricted advice.