Traditional network models may be faltering as statistics have suggested the biggest players are haemorrhaging advisers post-RDR.
The 18-page monthly Observatory’ update, compiled by research firm Matrix Solutions, showed that 11 out of the 15 largest networks have seen an exodus of registered individuals since December 2012, with overall numbers dropping by 669 RIs.
Directly authorised national firms have also seen adviser numbers slip since last year, with Aegon’s national IFA firms, Positive Solutions and Origen Financial Services, suffering the biggest loss of 288 advisers.
The total number of RIs that have left DA firms stands at 403, with 10 of the largest 15 companies seeing adviser numbers fall.
According to the data, Sesame Bankhall Group shed the most RIs in the past six months, from 1841 in December last year to 1643 at the end of June.
Personal Touch Financial Services saw the second biggest drop with investment permission during the first six months of this year, with numbers falling from 626 to 450. Openwork, Lighthouse-Group and Tenet Group lost 158, 140 and 88 advisers, respectively.
Jared Aitken, head of media relations for SBG, disputed the figures, saying it has been bringing more advisers on board across the group. He said: “The number of RIs in Sesame network increased last year and it has more than 2300 RIs.”
But David Young, marketing director of Matrix Solutions, said: “Some networks may calculate the figures based on differing criteria, although our research has shown a clear decline in numbers since the RDR back in January.”
Malcolm Streatfield, chief executive of the LighthouseGroup, said: “Adviser numbers are not the driver for profitability. What they do and the contribution they make is more important. We have a healthy pipeline of new joiners so the numbers are increasing.”
David Carrington, marketing director at Personal Touch, said: “We have research showing that productivity is up on a smaller number of advisers.”
The slump has allowed St James’s Place to widen its lead over its traditional competitors as the biggest network post-RDR. Adviser numbers at SJP rose from 2756 before RDR to 3002 as of July, the biggest jump of any network.
Adviser view
Rob Simpson, director of Warwickshire-based Simpson Financial Services, said: “The networks do well out of you, [but] it can get expensive for advisers.”
