New Retail Financial Advisor Report Published

19 Jun 2020

Advisors generate £4.9 billion from retail investment activities

 In 2019, intermediaries and advisors offering advice on retail investments earned almost £5 billion in revenue.  While volume sales of new investment products declined by 16% in 2019 compared with 2018, revenue from the provision of retail investment financial advice grew, because most advisors earn income from on-going charges rather than from on-off product sales. Moreover, advisors and intermediaries selling retail investment are of increasing importance to the retail investment product market (i.e. the market for investment products other than direct purchases of stocks and shares). The share of retail investment product sales via intermediaries and made with advice rose in 2019 compared with 2018.

Firms offering advice on retail investment products provided ad-hoc/initial/one off advice on over 1 million occasions in 2019 and they catered to just over 3 million on-going clients. These clients are serviced by almost 6,000 firms offering advice on retail investment products, with most of these (around 5,200) being specialist financial advisory firms. Firms advising on retail investments collectively employ around 30,000 advisory staff.

 

With financial advisors generating total revenues closer to £6 billion

While almost £5 billion was earned in 2019 from advice and intermediation on retail investment products, financial advisors earned total income of  close to £6 billion:  financial advisors generate income from retail investments and also from advising/intermediation on mortgages and non-investment insurance products.

About the Retail Financial Advisors Report

This market data report considers the retail financial advice and intermediary market, covering regulated and unregulated advice offered to consumers when buying financial products or organising their financial affairs. It also considers intermediary non-advised product sales. The report assesses the size and structure of the market, recent trends, the future and sets out the environmental framework in which advice and guidance is offered today. The report costs £200.

Full Report Details

See Related IRN Consumer Investment and Pension Reports

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