According to SimplyBiz, the current number of mortgage advisers is 10,500, but it expects this number could increase by anything up to 1,000 during 2013 as the post RDR market settles down.
Under RDR rules investment advisers will no longer be able to charge commission. Advisers will also need to achieve a minimum level 4 status in terms of their qualifications. If existing advisers fail to meet these standards they will not be able to make personal recommendations to retail customers from 1 January 2013.
Reynolds (pictured) said that many firms or advisers in firms are still deciding whether or not to continue their investment permissions in January 2013.
“There has been plenty of comment over the last few years surrounding the loss of advisers from the mortgage market. However, I think 2013 will see this trend reversing.
“The impact of the RDR will have an effect on the mortgage market indirectly even if the core regulation does not affect it. There will be firms, or advisers within firms, that will decide not to continue with their investment permissions in January 2013.
“However, rather than exiting the financial services industry, as has been predicted, it is now felt that these advisers will continue with their mortgage and protection permissions and become full time mortgage advisers. Those who have not achieved Level 4 Status before the implementation of the RDR may also choose to suspend their permissions on a temporary basis.”
