With falling numbers of investment advisers and the average age of those who are active, what does the future hold for the advice landscape?
KEY POINTS
- There are still over 11,000 advisory firms with almost 6,000 being directly regulated.
- There are almost 2,700 directly regulated one-man bands.
- The average age of IFAs is getting older.
- The consolidation trend of the last 10 years is accelerating
- There are over 110 acquirers in the market.
- The technology trend has changed from robo-advice to technology enabled advice where technology supports improved productivity and client engagement.
- Margins are contracting in asset management and platforms while financial planning margins have increased.
- The FCA and HMRC continually provide challenges to IFA models.
- The PI market is tightening and premiums are rising dramatically.
- There is a strong move by advisers to centralised investment propositions focused on model portfolios. Many are outsourcing these MPS solutions to DFM’s.
- Advisers who outsource need to understand the difference between the DFM providing this service as “Agent as Client” or “Reliance on Others”. PFS have provided a very good guide on this subject
Expert: Steve Martell – Tatton Investment Management
Facilitator: John Chapman – Orion Consulting
