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FSA survey shows advice sector decimated in run-up to RDR
by Michelle Abrego on Feb 14, 2013 at 13:07
A Financial Services Authority (FSA) surveys has suggested that one in 10 advisers left financial services in the 12 months to the summer of 2012, ahead of the retail distribution review (RDR) deadline.
Its survey was conducted on a sample of 1,438 advisers, of which 11.5% had left the industry since the summer of 2011. Extrapolating from the figures, the survey suggests about 36,000 advisers were left in financial services over the period, 58% of whom were IFAs and 19% bank advisers.
The FSA carried out research in the summer of 2012. Participating advisers who were not fully qualified and who were willing to be contacted were resurveyed in early December about their progress on qualifications.
As of December 2012, 93% of advisers held at least a level four diploma, 2% were awaiting results on their final paper and 2% were still studying.
The FSA found that only 3% of advisers were not going to take the appropriate qualifications It warned that these advisers should have stopped advising on 31 December 2012 until they have attained a level four diploma.
In November the FSA said that it expected 94% of advisers to attain their qualifications before the RDR deadline and that 86% had a relevant qualification.
The FSA said it would be putting out a more detailed report shortly and would be carrying out a further study on professionalism in the summer of 2013. It also aims to conduct other studies to track adviser behaviour and attitudes on other aspects of the RDR or related topics in the future.
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