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.

Fundweb sister title 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 21,696. 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