The company value of financial advisers has increased by more than 10 per cent in the past year after four years of declining growth, new research has shown.
The latest market analysis of 1,600 industries from Plimsoll Publishing, out this month (May), showed the average company value for independent financial advisers in the UK has increased 10.9 per cent in the past year.
This percentage change was the highest value growth recorded for IFAs in the past six years.
It came after growth in the value of IFAs had slowed for the past four years, from 10 per cent four years ago, 6.9 per cent three years ago, 3.3 per cent two years ago, and 1.3 per cent last year.
Source: Plimsoll Publishing Limited, IFA analysis (April 2019)
Meanwhile mortgage brokers fared even better, seeing an average yearly change in their company's value of 12.7 per cent.
This was an increase of 5.9 per cent on the 6.8 per cent growth figure recorded for mortgage advisers last year.
This year’s 12.7 per cent was a slight correction from a dip experienced last year, but was still some way off the 32.7 per cent average annual change measured six years ago, Plimsoll stated.
Source: Plimsoll Publishing Limited, mortgage broker analysis (April 2019)
Plimsoll Publishing based its research on data from company accounts filed at Companies House. It represents the performance of 2,100 UK IFAs and 288 mortgage brokers.
The firm stated its data was constantly updated with latest stats from Companies House.
Paul Stocks, director at Dobson & Hodge, said he was surprised by the findings.
He said: "I wouldn't have expected that given all the changes happening within the profession at the moment.
"For example, you had the FSCS levy increase and the issues surrounding professional indemnity insurance. Within the profession, it feels as if there are a lot of areas where we're not sure how they will play out in the end.
"Therefore I'm not sure of the cause of the increase, but markets are up a bit in the past 12 months and definitely up over the past three to four years."
What do you think about the issues raised by this story? Email us on email@example.com to let us know.