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FCA: number of advisers post-RDR has increased
by Danielle Levy on Aug 15, 2013 at 11:03
Research commissioned by the regulator has found the number of advisers in the country has actually risen during the first seven months of the year, contrary to fears the Retail Distribution Review (RDR) would spell a mass outflow of advisers from the industry.
According to RS Consulting research, which was commissioned by the Financial Conduct Authority's predecessor, the Financial Services Authority, the number of investment advisers working in the UK in July stood at just over 32,000, up from 31,000 in December of last year. The financial watchdog attributed the rise to advisers opting to re-enter the market.
The research found that of the total number of retail investment advisers surveyed in 2012, only 6% were planning to leave the industry compared with 8% in 2011. In 2012 only 2% of those from wealth management firms surveyed fell into the 'early leaver' category.
The research also noted a rise of 300 discretionary investment managers over the first seven months of 2013 to just under 1,800, while the number of stockbrokers was up by over 200, standing at just over 2,500.
While the RDR has brought with it the introduction of new professional standards, RS noted that 97% of advisers have the appropriate level of qualification, with the final 3% still studying within the timescales permitted by the rules. This stands in contrast to 2010 when less than half of all advisers were qualified to today’s standard.
The FCA noted that just over 21,000 advisers were fully qualified by the end of July, with 426 party qualified, compared to 2,212 RDR-qualified stockbrokers, with 56 still part way through the process.
The number of qualified discretionary investment managers stood at 1,752 with only 32 part qualified. Overall, RS noted that 129 RDR qualification waivers had been granted.
Bringing together the four categories of advisers, those that work in banks and building societies, stockbrokers and discretionary managers RS concluded that 93% were fully qualified.
Clive Adamson, director of supervision at the FCA, said in a statement: 'Today’s figures show that those looking for financial advice still have plenty of options open to them.
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