Number of adviser firms drops for fifth straight quarter

There were 5,414 intermediary businesses in the UK last December, 170 fewer than in September 2008. Networks, such as Sesame, are counted as intermediary businesses. IFA consolidators say the decline marks the beginning of a cycle that will see the industry shrink massively in the run up to the introduction of the FSA's Retail Distribution Review in 2012. There have been predictions up to 40% of advisers will leave the industry over the next three years, put off by the increased costs, qualifications and compliance that the new regulations require. Damian Keeling, managing director...