The FCA has revealed financial advisers brought in total revenue of £3.7bn in 2016 from retail investment activities.
There are 4,865 firms, according to the regulator’s data, but that includes networks as one company, when in reality they mirror the DA market. There are 2,427 businesses with only one adviser. The average remains at two IFAs per practice.
Average per IFA individual is producing somewhere between £130k and £150k pa.
And 26% of the income is commission.
And 74% of the income is from investments.
That means the average IFA is pulling in some £100k pa income from investments.
That means the average IFA, on average manages some £10m each. (assuming they collect revenue at 1% pa)
At SJP the numbers are broadly the same. There are 3,500 advisers managing £75bn. But if you strip out dormant fund holdings without advisers active you must surely reduce the number by half. If they were all actively serviced that would be £21m. Since probably half are NOT serviced, then this would bring them back to that same average of £10m per head – which would seem therefore to be a barrier. But since they don’t take the one per cent, the new business income levels must surely be much higher than the average IFA.
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