Protection and investment sales by advisers are on track to be lower than each of the last three years, according to the latest figures from the Financial Conduct Authority (FCA).
The total number of advised sales in retail investment and pure protection for 2015 is forecast to reach about 1.4 million, almost 20% lower than the 1.73 million recorded last year.
The figures, which also suggest a similar drop in non-advised transactions, come from the FCA's latest product sales data (PSD), which the regulator has published since 2006.
The FCA's 2015 figures are based on sales in the first six months of the year, so the full-year figures are estimates only and could be markedly different, though data from previous years suggests sales remain at similar levels in H1 and H2.
Sales of both advised and non-advised annuities - set to be the lowest on record this year at about 60,000 - are impacting the results, though income drawdown is on track to record about 110,000 sales, more than ever before.
A number of regulatory changes are likely behind the drop, with the pension 'freedoms' announced at Budget 2014 explaining the fall in annuity sales.
However, the overall figures follow a bumper 2014 for advised sales in retail investment and pure protection, which rose 15% compared with the previous year.
According to the FCA's figures, there were a total of 1,736,091 advised sales across both product lines in 2014, up from 1,503,816 in 2013.
Record sales of group personal pensions contributed to the increase.
The 15% rise in advised sales in 2014 was markedly higher than the corresponding 4% rise in total non-advised sales across retail investment and pure protection between 2013 and 2014, when they reached 2,166,728.
However, the rise of non-advised has been extraordinary in recent years, with sales almost doubling between 2012 - when they were 1,094,168 - and 2014.
The figures do not include those product areas for which there can be combined advised and non-advised sales, such as long-term care insurance, but these numbers are small compared with the overall figures.
FCA product sales data
(H1 2015 figures from Jan to June)
| Advised (H1 2015) | Non-advised (H12015) | Advised FY2014 | Non-advised FY2014 |
Projected FY2015 (vs FY2014) advised |
Projected
FY2015 (vs FY2014) non-advised |
|
| Bonds | 18,000 | 14,600 | 44,300 | 20,900 | Lower | Higher |
| Decum. products | 55,500 | 29,600 | 111,500 | 111,00 | Same | Lower |
| Personal pensions | 333,000 | 525,000 | 903,000 | 1,500,000 | Lower | Lower |
| Unit trust/Oeics | 17,300 | 72,000 | 37,000 | 143,000 | Lower | Same |
Further reading
Protection Pulse: Have sales increased during 2015?
