| An FSA commissioned report into the market | | | | discourage it (less advisers but possibly less clients |
| impact of the Retail Distribution Review (RDR) has | | | | willing to pay fees too). Certainly acquisition and |
| predicted major changes for the IFA arena which | | | | consolidation has stepped up in recent times, |
| will undoubtedly have repercussions for those | | | | paving the way for existing advisers at such firms |
| candidates seeking IFA jobs, paraplanning jobs and | | | | to be given more clients to service which has no |
| administration jobs. | | | | doubt improved their personal circumstances. |
| One of the key points is that by 2012 we should | | | | Similarly perhaps the larger companies with the |
| expect to see an exodus of smaller IFA firms | | | | greater marketing spend can benefit even more |
| from the market, with 46% of those practices | | | | from a raise in profile which may encourage |
| with revenue under £50,000 to disappear | | | | clients to leave the banks and seek their financial |
| altogether, the majority directly due to the RDR. | | | | advice elsewhere. Again, another positive to the |
| This will lead to an overall drop in the number of | | | | IFA jobs market. |
| IFA firms of 25%. Such a fall in advisory practices | | | | The Financial Services Consumer Panel certainly |
| is expected to cause an 11% reduction in overall | | | | thinks so; that a reduction in advisers will result in |
| adviser numbers and a perhaps even more | | | | a smaller yet better qualified salesforce, certainly |
| troubling number for those set to remain, a 9% | | | | one of the main aims of the RDR. |
| reduction in overall revenues. | | | | On the flip side though the loss of highly |
| So what impact will this have on the IFA | | | | experienced advisers, who have built up strong |
| jobs market? | | | | bonds with the local community, may yet drive |
| Firstly, such consequences have long been | | | | their clients away from independent advice, |
| expected by the majority of individuals working in | | | | especially those who aren't comfortable with |
| financial services. Increased costs and tighter | | | | paying fees. |
| regulation have already contributed to a heavier | | | | Away from front line advice it could be argued |
| burden being placed on adviser firms, with smaller | | | | that increased compliance and higher expected |
| practices the most vulnerable. The RDR will speed | | | | standards will necessitate the growth of technical |
| up this process as it adds the difficulty of passing | | | | support teams, great news from those currently |
| additional exams and changing the charging | | | | scouring the internet for paraplanning jobs and |
| structure to the melting pot. | | | | administrator jobs. The evidence so far this year, |
| Since 2008 there had already been a marked | | | | with a much higher number of paraplanning jobs |
| increase in the number of self-employed advisers | | | | and administrator jobs being registered, would |
| and sole traders applying to IFA jobs (not to | | | | suggest so, as is the growing realisation that |
| mention paraplanning jobs) as they seek greater | | | | support functions are as valuable to IFA firms as |
| support and structure which has no doubt already | | | | the advisers themselves. |
| contributed to a drop in the number of advisory | | | | If however the economy picks up considerably |
| practices. With the oft quoted maxim about the | | | | such internal factors may not be as relevant as |
| average age of IFAs borne out by the statistics, | | | | more and more companies will seek to get back |
| many are still not in a position to complete the | | | | to the recruitment levels seen in previous years. |
| Diploma by 2012 and many have probably opted | | | | Any increase in the number of IFA jobs will have |
| not to, instead hoping to sell (if they can) or pass | | | | positive repercussions for the number of |
| on their businesses. Therefore a drop in adviser | | | | paraplanning jobs and administrator jobs, with it |
| numbers is of no great surprise. | | | | difficult to see, barring another dip back into |
| It is still difficult at this stage to know whether | | | | recession, how the financial services job market |
| such factors will encourage the IFA Jobs market | | | | could get any worse. |
| (less advisers means more opportunity) or | | | | |