Revenue earned from retail investment intermediation in 2022 increased by 3 per cent to £5.5bn and reported revenue earned from mortgage broking rose by 12 per cent to £1.58bn compared to the previous year.
The Financial Conduct Authority (FCA) has released its latest analysis of the intermediary sector based on data from the Retail Mediation Activities Return (RMAR) for 2022.
This data is submitted by firms that offer advice on mortgages, insurance policies, and retail investment products for consumers, helping the FCA supervise and regulate these intermediary firms.
The report highlights key findings for 2022, including that revenue from non-investment insurance distribution rose by 10 per cent to £21.2bn.
A notable trend is the decline in the percentage of retail investment revenue that is accounted for by commission, which went from 14 per cent in 2021 to 13 per cent in 2022. But for non-investment insurance distribution, 84 per cent, and mortgage broking, 78 per cent, commission continues to be the predominant source of income.
Additionally, the research shows a rise in the number of retail investment adviser positions, with 37,381 reported in 2022 versus 36,674 in 2021. Similarly, from 36,211 in 2021 to 36,441 in 2018, the number of mortgage adviser roles increased little.
Furthermore, around 86 per cent of companies offering retail investment advice in 2022 supplied independent advice, while 12 per cent offered restricted advice. Only 1 per cent of companies offered both restricted and independent guidance, a percentage that did not change from 2021.
According to the FCA, this most recent report helps regulators and business experts better understand the dynamics of the market by providing information about the performance and trends of the retail intermediary sector in 2022.
