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FCA puts faith in small firms, but is the feeling mutual?
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by Michelle Abrego on Jan 20, 2014 at 13:06
The Financial Conduct Authority (FCA) has hailed small IFA firms for adapting successfully to the retail distribution review (RDR) and is hoping their evolution can help plug the advice gap.
Last week the regulator published its first progress report on the advice market a year on from the introduction of the RDR.
A drop in the number of bank and building society advisers, down by 26% from 4,810 in January 2012 to 3,556 in January 2013, initially stole the headlines, but behind these numbers there was evidence that small IFAs were thriving in the new world.
Not only had the number of financial advisers increased, albeit marginally by 6%, but FCA chief executive Martin Wheatley and Nick Poyntz-Wright, director of long-term savings and investment, both singled out smaller firms for praise.
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