Retail Financial Advisors Market Trends Report 2018 - ResearchAndMarkets.com

January 9, 2019

DUBLIN--(BUSINESS WIRE)--Jan 9, 2019--The “Retail Financial Advisors Market Trends Report 2018” report has been added to ResearchAndMarkets.com’s offering.

In 2017, financial advisory and intermediary firms generated total revenues of just over 22 billion, of which around 4 billion was generated from advice on and intermediation of retail investment products.

The total market rose by 11% in 2017 and is expected to grow further by 8% in 2018. Between 2013 and 2017, revenues from all financial advisory and intermediary firms grew by 26%, with the fastest growth coming from mortgage business (103%), then retail investment business (52%) and finally non-investment insurance business (19%).

Advisors and intermediaries selling retail investment are of increasing importance to the retail investment product market. Retail investment advice has undergone radical change in recent years. While in 2018 around 80% of revenue was generated by charges and fees, less than 40% was in 2013. Revenues from on-going advice and facilitated revenues have also grown in importance recently.

This 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 central focus of this report is the retail investment market, but it also covers the intermediary markets for mortgages and non-investment insurance. This report considers the size of the market, recent trends, forecast for the future and sets out the environmental framework in which advice and guidance are offered today.

Key Topics Covered

Executive Summary

Around 12,000, mostly small-scale firms Employing over 30,000 advisors The operation of the advisor market is defined by RDR But it is recognised that this has not solved the advice gap So FAMR was undertaken And a review of fund platforms A diverse market A 22 billion market Growth expected in the future, but Brexit is the big unknown Introduction Definition Abbreviations

Market Structure

Around 12,000 private advice providers Almost 150,000 registered individuals Most advisory and intermediary firms are small scale operations However, many are part of networks or groups Independent vs restricted advice Fund platforms crucial for the execution-only, non-advised market Publicly funded guidance

Market Developments and Drivers

RDR shapes the market Financial Advice Market Review (FAMR) FCA promotes Robo-advice to plug the advice gap Consumers would certainly benefit from advice and guidance But they continue to handle their financial affairs by themselves Because many have simple financial needs or feel they can do it by themselves And many feel financial advice is too expensive Consumers don’t always act in their own best interests IFAs the main source of regulated advice FCA Fund platform study

The Key Players

St James’s Place by far the largest network But the market is very diverse And don’t forget the fund platforms Profiles of selected players

Market Size and Trends

Advisors and intermediaries generate over 22 billion in revenue Fees replace commission in the retail investment sector Retail Investment advisors of growing importance to the investment market Facilitated and on-going revenues the growth areas for retail investments Almost 3 million clients receive ongoing advice on retail investments Intermediaries dominate the flow of funds into investment funds Fees and charges the main growth segment for mortgage business Commission the prime source of income for insurance brokers

The Future

The Brexit unknown Robo-advice, the great disruptor Human advisors are likely to shift upmarket Forecasts Associations

For more information about this report visit https://www.researchandmarkets.com/research/4jljjz/retail_financial?w=4

View source version on businesswire.com:https://www.businesswire.com/news/home/20190109005353/en/

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SOURCE: Research and Markets

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PUB: 01/09/2019 06:11 AM/DISC: 01/09/2019 06:11 AM


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