Fewer Financial Advisers in SA

financial advisers in South African financial institutions has dropped The drop has been 17% over the past year.

Financial advisers are an essential element of an economy and they generally assist people in planning their finances of the present and their savings for the future. A recent report showed, however, that the number of registered financial advisers has dropped by up to 17% over the past year.

The report said that the number of financial advisers in the life insurance industry and the investment industry were the most effected. Independent financial advisers still make up the majority, but the numbers show that there were up to 1400 fewer financial advisers active in the markets this past year.

When seeking an explanation for the decline in numbers, the report states that the stricter regulations in place and the harder socio-economic climate in the country are some of the reasons.

The report was part of a survey performed by the financial services exchange, Astute. It also found that fewer financial advisers were being employed by life offices and banks.

The Managing Director of Astute, Biddie Biddulph said: "This is an alarming trend, especially since most of those leaving the industry are experienced advisers whose knowledge and skills will be sorely missed."

He was encouraged however, by one of the other findings of the survey which stated that there was a influx of younger financial advisers into the field, which he believed would provide younger blood and renewal to the financial industry. Any industry which is experiencing a shake up should be looking for younger blood and new ideas which would help them move from their current position.