fears of adviser mass exit overstated

The number of authorised firms in the UK decreased by just 14 between February and March, from 23,596 to 23,582, slowing dramatically from the 233 that exited the market in the month before, according to research from Matrix Solutions.

fears of adviser mass exit overstated


The stream of registered individuals leaving the industry also fell significantly from 1,143 between January and February to 86 in between February and March.

Matrix Solutions said it collected monthly data from the FSA (now FCA) register in order to compile its monthly ‘observatory report’ and so can track the number of firms and registered individuals over time.

Between December 2012 and March 2013 Matrix Solutions said 341 authorised firms ceased trading, while the number registered individuals quitting the industry peaked between December 2012 and January 2013 (the month RDR was brought in) at 2,578.

Ian Beaumont, CEO at Matrix Solutions said: "Even though our latest Observatory Report shows a further decline in the number of authorised firms and registered individuals, the decrease is certainly leveling off. In fact, it may be the case that the numbers of authorised firms and registered individuals will soon start to rise.

"The initial sharp decrease of authorised firms and registered individuals post-RDR was in line with expectations rather than disastrous. By comparison, these new figures indicate that the initial concerns about the numbers leaving the industry post-RDR may have been overstated. Even so, it is important that we maintain a watching brief to ensure that the distribution market remains healthy in the post-RDR environment."



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