CompaniesApr 3 2013

Mass exodus is yet to happen: Retiring IFA

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According to the figures, there were 78 sellers over the third quarter of 2012, based on the number of people seeking to value their business.

Over the first quarter of 2013, this had risen significantly to 93 sellers.

Steve Hagues, founder of the Yorkshire-based consultancy, 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.

“The planned exodus didn’t happen before RDR so I think it will happen this year and next.”

His comments followed those made by Martin Wheatley, chief executive of the FCA, who said that data on the number of advisers in February 2013 suggested a 13 per cent drop on the same period in 2012, with just over 31,000 registered advisers.

Back in November 2012, the then FSA had suggested that the number would be 32,000.

When asked whether the RDR changes had forced advisers out of the industry, Keith Richards, the outgoing group distribution and developmnent director for Tenet, and incoming chief executive of the Personal Finance Society, said: “He said: “It is too early to make any meaningful assessment about 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.”