Thousands of intermediaries leaving the market
Equifax Touchstone said its findings show the continuing impact of the Retail Distribution Review.
Neil Cunningham, general manager of Equifax Touchstone, said: “Quarter 4 of 2012 saw nearly 5,000 intermediaries de-register and whilst there have not been anywhere near the same numbers exiting the market this year, there were still more than 2,000 who de-registered in Quarter 1 2013.
“This reduction in intermediaries – who are essentially the distribution channel for many investment products – means it is crucial for providers to understand the profile of those remaining to ensure they can deliver sales for long-term growth and market share objectives.”
The Equifax Touchstone analysis from Quarter 1 2013 also identified a shift to higher value products being advised by those remaining in the marketplace.
According to the data in the first three months of this year SIPPS accounted for more than 60% of pensions products sold.
This upward trend is in marked contrast to sales of other less complex personal pension products which declined in sales in the same period.
Cunningham added: “The implication of this new data is that advisers are adjusting their offering to concentrate on higher net worth clients more likely to be willing to pay fees.
“In such a changing intermediary landscape, it is vital providers know their intermediaries and how they are performing in their local market. Businesses that don’t understand this shifting focus could lose market share quite quickly.”