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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Consumer Duty Alliance launches data forum to help with FCA expectations

Consumer Duty Alliance launches data forum to help with FCA expectations

Chaired by Model Office’s Chris Davies

Isabel Baxter
clock 26 June 2025 • 1 min read
'Risk aversion' from FCA and PRA limiting UK growth and competitiveness

'Risk aversion' from FCA and PRA limiting UK growth and competitiveness

Regulators 'constraining firms', House of Lords report claims

Patrick Brusnahan
clock 13 June 2025 • 2 min read
FCA targeted support communication to 'ramp up' as further guidance issued

FCA targeted support communication to 'ramp up' as further guidance issued

Regulator expected to update the industry this month

Isabel Baxter
clock 09 June 2025 • 5 min read