The Association of Professional Financial Advisers (APFA) has called on the upcoming fees paper from the Financial Conduct Authority (FCA) to reflect the latest drop in adviser numbers.
APFA’s new report, The Financial Adviser Market: In Numbers, revealed that at the end of 2011 there were just over 26,000 advisers (in FCA defined ‘primary category advice firms’ category.
New FSA data show that this fell to around 20,000 in January 2013: a fall of nearly 25% in the 12 months before RDR.
Chris Hannant, policy director at APFA, said: “The adviser market today cannot be expected to shoulder a burden based on its previous size. The FCA needs to ensure it factors the 25% drop in advisers in 2012 into its upcoming budget and fees for financial advisers.
“It is vital for financial advisers that the amount the FCA asks from them is fair and proportionate, especially as they are already dealing with the costs of RDR.”