The number of advised sales of investment products fell from 79,129 in 2012 to just 31,692 last year, a drop of 55%.
During the same period non-advised sales rose 110% and hit 167,687 in 2016 according to the latest data published by the Financial Conduct Authority.
The shift in how sales are conducted follows the implementation of the Retail Distribution Review (RDR) on 31 December 2012, tightening up rules on how advisers were paid and marking the first time many clients were charged directly for the advice they received.
The 31,692 products sold on an advised basis in 2016 fell far below the more than 200,000 sold in 2009, data from the FCA shows.
Adrian Lowcock, investment director at Architas, said: “It is down in RDR in part and it is what the industry blames,” but he added there were wider issues coming into play.
Advised sales have plummeted 76% since 2006 while non-advised have been on the rise.
Not only has it become harder to advise following the RDR crackdown but it has also become much easier on the execution-only side as technology and access to investments improves, Lowcock said.
Broader themes may also be coming into play, Lowcock said: “Behind all of it is probably a little bit down to lack of trust in experts following the financial crisis because few experts saw it coming to the extent it did and there’s been miss-selling of financial products more broadly so perhaps people are more interested in doing it themselves.”
