The UK Financial Conduct Authority (FCA) today posted its latest analysis of the intermediary sector based on data drawn from the Retail Mediation Activities Return (RMAR) for 2023.
Firms that provide advice on, or arrange, mortgages, insurance policies or retail investment products for consumers must send the FCA information about their activities on the RMAR.
Reported revenue from retail investment intermediation in 2023 decreased by 3% to £5.3 billion, compared to 2022.
Reported revenue from mortgage broking fell by 13% to £1.37 billion in 2023, compared to £1.58 billion in 2022.
Revenue from non-investment insurance distribution rose by 16% to £24.6 billion.
The share of retail investment revenue accounted for by commission fell from 13% in 2022 to 12% in 2023. For non-investment insurance distribution and mortgage broking, commission remains the primary source of revenue, accounting for 83% for non-investment insurance distribution (down 1% from 2022) and 78% for mortgage broking (unchanged from 2022).
The reported number of retail investment adviser posts across all firms fell to 37,136 in 2023 compared to 37,381 in 2022. The reported number of mortgage adviser posts rose to 36,836 compared to 36,441 in 2022.
Of the firms providing retail investment advice in 2023, 86% provided independent advice. Conversely, 12% of firms provided restricted advice. The percentage of all firms that provided both restricted and independent advice in 2023 was 2% compared to 1% in 2022.
