22nd March 2022
Adviser Sector Capacity Grows by 23% in 2021
The Heath Report 4 Survey shows that the adviser community has increased its sector capacity by 1.2m new clients. This is really good news. The more consumers we handle - the more important we are to the Treasury and Politicians.
Most advisers had little to fear from RDR in terms of short term profits but lots to lose from becoming irrelevant or too small to worry about. . In 2005, our sector used to service 16m consumers but by the Heath Report 3 at the end of 2019, we were servicing less than 5m.
In 2021 not only did we face the COVID shutdown, but Matrix tell us that the number of active advisers dropped in 2021 by 4.27% or 950 individuals.
So why are we seeing an improvement that is counterintuitive? Some of it may be an understanding that the use of ZOOM and Teams makes advisers far more productive and therefore able to service a greater number of clients.
It may be that the lockdown gave clients more time to contemplate their future and the advice they needed
It may also be a realisation that with adviser firm costs ever increasing advisers need to widen their client banks simply to attempt to maintain profitability.
RDR created a new advice market based not on the needs of consumers, but the social engineers within regulation. The banning of commission was not requested by consumers, many of whom would only take advice though that payment method.
As a result of RDR, consumers lost 4,000 advisers and the survivors top sliced client banks to those who are able to pay fees As a result, 12m consumer lost access to professional advice and another 6m lost access to High Street bank advice.
The regulator's brilliant attempt to boost the scammers business by removing advisers who are in the front line stopping their clients' more outlandish investment decisions.
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