APFA blames 10% drop in adviser profits on FSCS levy

Trade body says levy threatens viability of the sector

clock • 1 min read

Adviser firm profits fell £100m in 2015 compared with 2014, a drop the Association of Professional Financial Advisers (APFA) attributes to increases in the "unsustainable" Financial Services Compensation Scheme (FSCS) levy.

The £100m drop represents a fall of 10% in pre-tax and 65% in post-tax profits, APFA data showed. The pre-tax profits figure was £835m in 2015 compared with £931m in 2014, itself up from £884m in 2013. This drop is despite a steady increase in turnover year on year of 8%. The number of advisers rose marginally from 23,640 to 23,864, and there was stability in the number of advice firms with 14,491 firms registered with the Financial Conduct Authority - this is despite considerable merger and acquisition activity in the industry. The average number of advising staff per firm remaine...

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