The number of advisers, i.e those holding the CF30 function and an FSA primary category ‘financial adviser’, fell from 23,865 in 2012 to 20,453 as of 1 January.
The total number of advisers in the market has also fallen since 2012, from 44,556 to 31,132; the extra figures include bank and building society advisers, stockbrokers and discretionary investment managers among others.
The FCA plan for regulatory fees and levies for the financial year was set out in April. Most advisers face a 15% increase in regulatory fees and when added to the additional regulatory bill for advisers who handle client money, such as mortgage brokers, advisers are paying a collective 30% of the FCAs total budget.
Apfa director general Chris Hannant says: “The fall is a significant point, because we want to ensure 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.”
