Industry Statistics

At the Personal Investment Management & Financial Advice Association (PIMFA) we cover the Financial Advice and Wealth Management arena in the UK. This community of financial expertise in the UK is forever changing and the research we produce and the data we collate will represent this, we want to inform and educate you as to the current trends and to the more traditional facets of advising on and managing assets. This section will give a brief overview, and the members section will give greater detail, on how this world is changing and how you can adapt or focus your best efforts in a timely and  efficient manner to take advantage of opportunities that arise.

The Financial Adviser Market:

The Financial Adviser Market: In Numbers Report (Published in 2018) shows the size and nature of the advice sector. The report provides a comprehensive overview of the financial adviser market and the trends within it.

Looking back what happened in the year 2017?

  • Well 2017 had actual physical advisers rise to a degree, but adviser firms dropped similarly. So, you can say there is a strong demand for advisers out there still
  • 2017 Turnover increased by a massive 22% from 2016
  • Retained Profits have even blown that out of the water, as they more than doubled that of 2016. So there may have been additional regulations to deal with and a precarious macro environment but profits are still considerable

2017 Fees and Commissions both moved significantly, by 28% in total, demonstrating it is still lucrative to be in the wealth management arena.

 

Read the full report here.

The following excerpt is partly taken from ComPeer’s Q2 2018 update of the UK Wealth Management Industry report

As we are now at Q2 2018 many wealth management firms were placing much of their focus on Brexit concerns and dealing with clients who may be compromised by this. There is still a lot of regulation to contend with. As such it will be encouraging news for them, that it is not all doom and gloom for the sector. Asset levels continue to rise, once again re-writing the record books as total assets under management and administration reached £975 billion, ever closer to the illustrious £1 trillion mark.

Even though there was a small decrease in trade volumes, revenues (largely fee-based) picked up in the final quarter, now at £1,816 million for the industry as a whole.

For the Execution Only Stockbrokers, the good news continued to come as the firms performed exceptionally well and are now at £196 billion assets under management, with a 4.3% quarter on quarter improvement.

On the whole though there are many positive results to take for the industry as we now at Q2 2018. With everything the industry has had to deal with, few would have predicted record achievements and yet that is what it has been delivered, especially in asset values, and soon the industry will breach the £1 trillion pound landmark, which is cause for celebration.

Key Statistics on the UK Wealth Management and Financial Adviser Market

Wealth Management
Key Statistics

Current Quarter

Previous Quarter

% Change

Same Quarter in Previous Years

% Change

Investment Assets (£billion)

975

942

3.5%

915

6.6%

Client Trades* (000s)

7,182

7,480

-4.0%

7,472

-3.9%

Retail Market Bargains (000s)

2,993

3,149

-4.9%

3,001

-0.3%

Total Revenues (£million)

1,816

1,761

3.2%

1,701

6.8%

FTSE UK Private Investor Balanced
Index

4,239

4,072

4.1%

4,110

3.1%

Financial Adviser
Key Statistics

December
2017

Previous Year

%
Change

Notes

Latest No of Financial Adviser Firms

13,690

14,254

-4%

This can be down to consolidation, M&A activity, as well as some firms hanging up their boots

Consolidated Revenue (for all Regulated business)

£4,484m

£3,692m

21.5%

A strong revenue increase for firms

Pre-Tax Profits

£699m

£569m

+23%

Retained Earnings

£230m

£102m

125.5%

The prior years were subdued looking at the last 7yrs and so this involves some tracking back to prior higher levels of Retained Earnings and a very good improvement this year too.

Pre-Tax Margins

15.6%

15.4%

1.1%

More or less flat

* participating firms only

[1] Investment Assets and Revenue are for the total market, based on extrapolated quarterly survey participant data.  Participants account for over 60% of total market assets and 65% of total market revenue. Client trades represent participating firms only.  Retail market bargains are for UK Retail Stockbrokers.

With thanks to ComPeer limited: www.compeer.co.uk