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Hannant renews calls for regulatory fee review

Speaking as the Association of Professional Financial Advisers released updated figures on adviser numbers, the director general of the professional body said the regulator needed to revisit how much it levied on advisers.

An updated version of a report released by Apfa in March, The Financial Adviser Market in Numbers, revealed a fall in the total number of adviser numbers from 41,000 in December 2011, to 31,000 in December 2012.

Of those figures, 26,000 worked for financial adviser firms in 2011, falling to 20,000 in December 2012.

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Mr Hannant said: “The drop in advisers since 2012 has been around a quarter. There are conflicting estimates for the number of investment advisers prior to RDR, but 41,000 seems right to us as this ties in with what we know about the numbers leaving the banking sector.

“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 advisers is fair and proportionate. Armed with these new statistics, we will continue to press the FCA to ensure that becomes a reality.”