South African financial advice sector 'undergoing changes'

Dec 10, 2009

The ongoing economic crisis has significantly impacted upon the South African financial advice sector.

Such is the assertion of financial services exchange Astute, which carried out a study revealing that the number of independent financial advisers within the life insurance and investment industries has fallen 17 per cent - the equivalent of around 1,400 professionals - over the past 12 months.

Managing Director Biddie Biddulph cited the socio-economic downturn and changes in regulation for the decline, pointing out this has been "an alarming trend", particularly as many of those who have departed have been experienced advisers.

However, he states that such developments have resulted in "the emergence of younger blood" amongst advisers, something he claims should help lead to the financial sector's renewal.

Recent changes in the country's financial industry have seen the government set up a taskforce aimed at tackling corruption within the public sector, something Reuters claims has previously damaged investor confidence and cost the country millions.