The FCA’s latest analysis of the intermediary sector, to end of 2022, shows adviser numbers have increased as has revenue in the sector.
The data, based on the Retail Mediation Activities Return (RMAR) for 2022, reveals reported number of retail investment adviser posts across all firms rose to 37,381 in 2022 compared to 36,674 in 2021. The reported number of mortgage adviser posts also rose slightly to 36,441 compared to 36,211 in 2021.
Compared to 2021, reported revenue earned from retail investment intermediation in 2022 increased by 3% to £5.5 billion.
Of the number of firms providing retail investment advice in 2022, 86% of firms provided independent advice. Conversely, 12% of firms provided restricted advice. The percentage of all firms that provided both restricted and independent advice in 2022 was 1%. This has remained the same as 2021.
Reported revenue earned from mortgage broking also rose by 12% to £1.58 billion in 2022, compared to £1.4 billion in 2021.
Revenue from non-investment insurance distribution rose by 10% to £21.2 billion.
The share of retail investment revenue accounted for by commission fell from 14% in 2021 to 13% in 2022. For non-investment insurance distribution and mortgage broking, commission remains the primary source of revenue, accounting for 84% for non-investment insurance distribution (unchanged since 2021) and 78% for mortgage broking (compared to 80% in 2021).
Firms that provide advice on, or arrange, mortgages, insurance policies or retail investment products for consumers are obliged to send the FCA information about their activities on the RMAR. The regulator uses the information to help supervise the activities of intermediary firms and inform its other regulatory functions.
RMAR data has been published since 2016 and categorises firms based on their main type of regulated business activity. For example financial advisers, insurance intermediaries, mortgage brokers.
