Financial Conduct Authority  

Only 6% of advisers are under 30 years old

Only 6% of advisers are under 30 years old
Photo by Mikhail Nilov [Pexels]

Just 5.7 per cent of retail investment advisers in the UK are under 30 according to data published by the Financial Conduct Authority.

Data published via a Freedom of Information request last week (April 1) showed that just 261 advisers are under 25, and 2,209 are under 30, making up 5.7 per cent of the total number of 43,326 advisers qualified to offer retail investment advice in the UK.

The figures were part of an Freedom of Information request sent to the regulator in May 2021 but were published by the FCA last week along with a host of other FOIR responses.

The FCA broke down the numbers into two sets of individuals. The first was those employed and therefore certified by a directly authorised firm to carry out personal recommendation on retail investments, but not broker funds (31,899). The other was those working at appointed representatives who are still authorised as CF30s by the FCA (11,427).

The watchdog did caveat the CF30 function is not specifically defined for retail investment advisers, meaning if the firm has other permissions CF30 can cover functions other than retail investment advice.

AgeIndividuals certified by authorised firmsIndividuals authorised by the FCA as CF30Total% of retail investment advisers in UK
Under 25183782610.6%
25-291,5746352,2095.1%
30-395,5592,0517,61017.6%
40-498,3663,10311,46926.5%
50-5910,7363,66814,40433.2%
Over 605,4811,8927,37317%
Total31,89911,42743,326100%

Source: FCA

The age group with the most advisers was 50-59, which dominated 33.2 per cent of the overall total. After that its was 40-49 (26.5 per cent), 30-39 (17.6 per cent), with over 60s following closely behind with 17 per cent.

The response was sent just a month before a survey by investment manager PortfolioMetrix found that adapting to managing the needs of younger clients was the biggest concern for 150 advisers it polled.

A quarter of advisers (26 per cent) told the firm they were struggling to come up with a profitable service model for their younger clients. While much had been written about the need for younger people to have access to financial advice, it was still a significant issue for advisers according to Ben Peele, UK managing director of PortfolioMetrix.

He explained: “While many people under the age of 30 may not have significant assets to invest right now, a Capgemini report last year highlighted that many advisers are not ready to manage intergenerational wealth transfer and that around four out of five beneficiaries will switch away from the original adviser.

“Clearly, finding a way to keep the surviving family of older clients with the firm is an issue that merits some careful thought by advisers.” 

ruby.hinchliffe@ft.com