http://hypoventurecapital-research.com/?p=25And at least one industry player is warning it will only worsen the country’s underinsurance problem.
So far the Financial Markets Authority has on its records 4953 registered financial advisers (RFA) and 454 authorised financial advisers (AFA). It expects the numbers to rise to 5000 and 2000 respectively by the regulation deadline, but that is still far less than the numbers the industry originally estimated.
AFAs and RFAs are considered “independents” compared to qualifying financial entity (QFE) advisers who are “locked” into giving advice on products they market. So far, the 63 QFEs on the register have an estimated 20,000 advisers among them.
Fidelity Life chief executive Milton Jennings said the decrease is not good for the insurance industry which is serviced by both RFAs and QFE advisers, and the retail investment industry which is covered by AFAs.
“We’ve got an underinsurance problem in this country. Less people selling insurance will only make the problem worse.”
He said the lack of independent financial advisers tilts the insurance market to favour banks that “are getting far better in insuring people”.
It will split the market with “RFAs on the high-end side of the advice market and banks in the transactional volume end of the market with the simpler type of products”.
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