Following a number of adviser departures that 2012 faced in the run-up to RDR, Ernst & Young (E&Y) has said adviser numbers is expected to drop further to 20,000 in 2013.
Early analysis from the FSA suggests the total number of retail investment advisers fell 23% from the 40,566 estimated by the regulator at the end of 2011 to 31,132 at the end of 2012, the first day of the RDR.
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Ernst & Young EMEA financial services partner, Trevor Hatton, who thinks 2012 has been "particularly challenging for life companies, asset managers, platform providers and distributors", expects this figure to drop substantially during 2013.
"Anecdotal evidence suggests that, following an excellent Q4 2012, new business for many players during Q1 2013 has been slow.
"This is unsurprising given the fundamental change to market dynamics driven by RDR, and we expect to see a steady improvement as the year progresses and as consumers and advisers get to grips with the new environment.
"However, we remain of the of the view that adviser numbers will continue to fall for some time. And we think our 2009 forecast of 20,000 by year end remains realistic." Hatton said.
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By GlobalDataIn addition, Hatton expects the Financial Conduct Authority (FCA) to be "more interventionist and intrusive" than the FSA, with a "significantly" increased use of thematic reviews and section 166 reports.
