The Personal Finance Society has welcomed the FCA’s adviser sector study published yesterday showing rising financial adviser numbers but warned there are still too few advisers to meet demand and soaring PI insurance costs are hitting the profession.

Sceptics may have questioned warnings that the soaring cost of Professional Indemnity Insurance would put some advisory firms out of business. They may have to eat their words.

Wealth manager Harwood has placed a subsidiary, appointed rep adviser firm Network Direct, into voluntary administration due to “weak investment markets” and rising Professional Indemnity insurance costs.

Some 45% of PIMFA member firms have reported increases in their FSCS levy bill of more than 100% in the last five years, a survey for the wealth manager trade body has revealed.