As the number of advice firms have decreased over time due to consolidation but adviser numbers are growing, the profession now risks “polarisation,” SimplyBiz CEO Tom Hegarty has warned.
Speaking to Professional Adviser, Hegarty noted that the number of advice firms has gone down 12% in the last two and a half years due to consolidation. Meanwhile, adviser numbers have risen 15%—"mostly because large firms have the infrastructure and academies to bring in new advisers". "This creates polarisation," he explained. "Large firms are getting bigger, and smaller ones are disappearing. That limits consumer choice, and the Financial Conduct Authority (FCA) wants a vibrant and sustainable sector." Hegarty continued: "We've [SimplyBiz] got a duty to help smaller firms thrive—by...
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