Keith Richards, group distribution and development director, said a further 15 per cent of Tenet’s 1500-strong directly authorised advisers may also have stopped providing investment advice, either by choice, change of role or not achieving the level four qualification.
However Mr Richards said it was difficult to say accurately how many advisers had been lost across the market as a result of RDR as exits have been in progress during the past couple of years.
He said: “It is too early to make any meaningful assessment about consumer reaction, and in particular any impact on adviser businesses.
“Both opportunity and threat will continue but a clearer picture will emerge in the coming months and it is possible RDR will result in a further loss of qualified advisers.”
Mr Richards added that Tenet’s net adviser numbers had increased when compared to the same period last year, suggesting wider consolidation is taking place across the market.
Daniel Harrison, senior partner of Newcastle upon Tyne-based True Potential, said no advisers had been lost from the network, but three had their investment adviser status removed until they received their statement of professional standing.
Steve Hagues, managing director of Retiring IFA, said the mass adviser exodus had yet to happen.
He added: “The market is buoyant in terms of buyers and sellers. We have seen a notable increase in activity. Inquiries have picked up by 20 per cent compared with the end of 2011.
“The planned exodus didn’t happen before RDR so I think it will happen this year and next.”
In November the FSA estimated there would be 32,000 retail investment advisers who were RDR-ready. It said further figures would be released in January.
Data from the regulator to the end of September 2012 showed that only 76 per cent – 27,400 – of advisers held a level-four qualification and had completed the necessary gap-fill to operate under the new rules.
A further 10 per cent – 3700 out of approximately 37,000 advisers in total – were still waiting for the results of their final exams. This means that as of November, 24 per cent of advisers were still not fully RDR-qualified
The figure of 24 per cent is almost as high as original estimations made by Ernst & Young in its 2010 Radar report for the FSA, which predicted the numbers of advisers would fall from approximately 30,000 to 20,000 by 2015 – a drop of roughly 33 per cent.
SPS: facts and figures |
Accredited bodies have begun revealing details of how many statement of professional standing certificates, required by all post-RDR advisers, were issued as of 1 January. The Chartered Insurance Institute has issued 21,152 and the Institute of Financial Planning has issued 400. The Pensions Management Institute said around 32 certificates had been completed or were in the process of verification. The CFA Society of the UK said it would issue 300 certificates in 2013. The Chartered Institute for Securities & Investment revealed it had issued 5421 statements. Ruth Martin, managing director of the CISI, said: “Advisers all now need to adapt to the new rhythm of renewing their statements, which will include close attention to the continuing professional development requirements.” The ifs School of Finance declined to provide figures. The Institute of Chartered Accountants in England and Wales said it was unable to provide figures, while the Chartered Institute of Bankers in Scotland was contacted but did not respond with figures at the time of going to press. |
FSA view
An FSA spokesman said a true picture of the advisory sector would not emerge for a few months as advisers have 60 days from the 31 December to apply for an statement of professional standing.
The regulator has given advisory firms from 7 January to 29 January to provide data on the professional standards of individual advisers.
There is also a 30-month rule for new entrants.
Individuals moving to an advisory role between 1 July 2009 and 1 January 2011 have a fixed deadline of 30 June 2013.
Individuals who moved to an advisory role after 1 January 2011 have a rolling 30-month deadline.
