The Association of Professional Financial Advisors (APFA) has bolstered its call for the FCA to ensure future fees for the advisor industry reflect the industry’s reduced size, as it published an updated version of its report "The Financial Adviser Market: In Numbers".
The report includes new figures on the fall in advisor numbers over the last few years and combined with data published in the first edition.
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The new report confirms the scale of the drop in advisor numbers over the last few years. Figures newly released, compiled by the then FSA, reveal that in 2011 there were 41,000 investment advisors but that number fell to 31,000 by December 2012 – a drop of 25%. Of those 41,000 advisors in 2011, previous figures published by APFA showed that 26,000 worked for financial advice firms. That number fell to just over 20,000 by December 2012.
Chris Hannant, director general at APFA, said: "The fall is a significant point, because we want to ensure that the FCA takes the fall into account when it calculates future fees for the industry. The new, smaller market cannot be expected to shoulder the same financial burden it did when it was much larger.
"It is vital the amount the FCA asks from advisors is fair and proportionate. Armed with these new statistics, we will continue to press the FCA to ensure that becomes a reality."
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By GlobalData
