Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a561402
Research reveals IFAs control £591bn in assets
News sponsored by:
How can I find Citywire's other websites?
You've probably noticed that New Model Adviser®, Citywire's leading website for financial planners has got a brand new look and feel. Our aim is to give you a more focused, simplified experience.
If New Model Adviser® isn't the website you’re looking for, just click on one of these options
Markets
by Alex Steger on Jan 26, 2012 at 14:39
IFAs are a crucial part of the UK’s wealth management industry, controlling over a quarter of the assets it holds and employing just over a fifth of its workers, according to new research.
The research, by consultants Scorpio Partnership, showed that of the £2.2 trillion of assets managed by advisers, private banks, high street banks, and private client investment managers, IFAs advised on £591 billion.
This was second only, by sector, to private banks, which managed £886 billion, with high street banks responsible for £501 billion, and private client investment managers handling £217 billion.
The survey also showed that financial advisers servicing clients with between £100,000 and £1 million of assets typically enjoyed gross profit margins of up to 35%.
The UK wealth management industry employs 124,000 people, with the IFA sector accounting for the second most of any sector, with 22,611.
Only private banks employed more people than the IFA sector with 22,700. High street banks employed 20,000, and private client investment managers 17,900. Life companies employed 5,800 people and platforms 4,237.
The survey showed the UK’s wealth management industry generated 1% of GDP, employing 12.5% of financial services workers, and influencing the wealth of nearly 9% of the UK population.
Andrew Fisher (pictured), Towry chief executive, said the aim of the research had been to show the importance of wealth management to the UK economy.
‘The industry needs to communicate in concert. This initiative is aimed at determining the core value of the wealth management industry and clearly shows the important worth of wealth – both personal and corporate – to the wider future story for the UK economy,’ he said.
15 comments so far. Why not have your say?
Compliance Officer
Jan 26, 2012 at 14:58
Control? I thought the current phrase was "Assets Under Influence"!
report thisPhil Sipocz
Jan 26, 2012 at 15:02
Don't worry. The FSA are doing their level best to reduce IFA's to zero and help the banks have it all.
report thisMichael Middleton
Jan 26, 2012 at 15:02
Controlling or advising? Your article appears to contradict the headline. Clearly advising on and having control are not the same thing.
report thisDavid Baker
Jan 26, 2012 at 15:11
The employment figures look highly supect. Life companies and high street bank numbers can't be right.
report thisIan Lees
Jan 26, 2012 at 15:16
David - the bank employee numbers are probably those who are re partriated and employed at FSA & FOS. It is interesting how many employees were shed from Banks like RBS - and it is interesting that more people in England were made redundant - than in for example Edinburgh. The same holds trus for Edinburgh based bank TSB who purchased Lloyds and who are branded as LloydsTSB - and follow the TSB strategies.
report thisUsually found sitting on the fence
Jan 26, 2012 at 15:30
I agree with David Baker, the employment figures look questionable. For example, has it not been claimed that the IFA sector will reduce by up to a third after RDR, leaving approx. 20,000 left in the market... I may have mixed something up, but it does not look right and additionally does it not make £26m per employee (would appreciate a second opinion on the maths)
report thisDave
Jan 26, 2012 at 15:42
the employment figures are probably those people registered on the fsa register rather than the actual number of people employed by the companies in question. £591bn between 22,000 does suggest around £26m under control/management/influence per IFA which seems a touch steep!
report thisRob Simpson
Jan 26, 2012 at 15:51
I think these figures seem quite realistic.
The good news is that there is a large share of the market still to capture.
report thisChartered Mark
Jan 26, 2012 at 16:25
From the 124,000 where do the other 30,750 work?
report thisRoydo
Jan 26, 2012 at 16:34
Some might be self employed I suppose, but not 30,750!
report thisIan Lees
Jan 26, 2012 at 17:21
No sign of Tied Agents, or Multi tied Agents or St Jimmy Place ( a potential new name for St James Place - when Scotland becomes Independent ? --or should it be St Jimmy Close ? ). Perhaps politics could adapt to Tied or multi tied agreement and tie up with another country ( e.g Iceland since their banking shares so many common similarities such as insolvency ) - if they do not like England. Perhaps their new sponsor could take their share of the buden of Debt ?
report thisBarman
Jan 26, 2012 at 17:27
Do employee pension schemes come under this figure, as that would apply quicte a distortion?
report thisJames Clancy
Jan 26, 2012 at 21:08
I thought that the figures £591 billion. the promise Mr Fisher has made to Private Equity Firm Palamon, That he would have under management before the IPO,
My assumption is based on his comments and respect he has for registered advisers that own assets under influence other than those employed by Towry Law
report thisWill i am
Jan 27, 2012 at 10:29
I demand a recount!
No need to worry - the Banks will have all the IFA assets soon.
report thisted jones
Jan 27, 2012 at 13:32
and who will work for towry ....they will have issues recruiting who wants to works for a litigious IFA ??? NOT ME
report thisleave a comment
Please sign in here or register here to comment. It is free to register and only takes a minute or two.