Most retail investment advisers are reluctant to recommend their career to others, a Financial Services Authority (FSA) commissioned report says.
The study, written by RS Consulting for the watchdog, suggests this is indicative of morale problems within the industry, which the retail distribution review (RDR) is said to have exacerbated.
Just 35% of advisers would recommend retail investment advice as a career, falling from half when a similar survey was carried out last year. Only 8% describe themselves as strong advocates of a career in the industry.
In contrast, 12% of respondents say they would strongly discourage someone from entering the industry while 48% of those planning on leaving the industry after the RDR’s implementation on December 31, 2012, strongly discourage the career choice.
“The FSA, as the regulatory authority, should not be complacent about this trend, which could, if it continues, undermine the future health of the industry and regeneration of the population by dissuading new young blood from entering the profession,” the report says.
The study concludes that “does appear” to be a morale problem within the retail investment advice industry and claims the RDR has “probably contributed” to this.
However, the overall economic climate and its effect on business are also sources of the blame, the research adds.
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