FCA figures suggest smaller advice firms are a good deal more profitable than their larger counterparts but, wonders Tim Sargisson, does this suggest not enough resource is allocated to risk management and oversight?
Earlier this month, the Financial Conduct Authority (FCA) provided its latest analysis of the intermediary sector based on data from the Retail Mediation Activities Return. The regulator's key findings show that revenue earned by intermediary firms increased in 2018 compared with 2017, continuing a trend seen in recent years. Reported annual revenue from retail investment business increased by 12% between 2017 and 2018 - from £3.95bn to £4.42bn. Revenue for 2018 is up by 58% on 2014. Despite all the talk about consolidation, the number of intermediary firms increased over the correspo...
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