A fall in the number of individuals with approved status represents a clear reversal in the trend since Q1 2009, figures from IMAS, a corporate finance adviser specialising in managing sales of UK financial services businesses, show.

The latest figures buck four successive quarters of improving data, says the firm.

Net approved person numbers were down 42% compared to Q1 2010, with over 2,300 people net leavers of the industry in the second quarter.

Approved person joiners were down 3% compared to the previous quarter. Leavers were down 12%.

The weakness of figures for Q2 directly contrasts the recovery trend seen in the
previous four quarters, says IMAS, with a 36% decline in leaver numbers from Q1 2009 to Q1 2010 now reversing.

Sponsored

Introducing the Green Living Reward

Your clients can now get up to £2,000 cashback for making energy-efficient home

Sponsored by Halifax Intermediaries

Around 20,000 FSA approved persons have left the industry since Q1 2007, its figures suggest.

All base data for its report has been sourced from the FSA Register, says the IMAS, with further analysis undertaken by IMAS Corporate Advisors to provide a breakdown by business activity, geographical spread and legal structure.

Although FSA authorisation of new entities is up on Q1 2010, the overall decline in the second quarter of this year has been driven by a larger increase in cancellations, says IMAS.

“Notwithstanding recent headline merger and acquisition deal announcements, the UK financial services industry’s recovery appears to be faltering”, it says.

However there is continued confidence is the financial investment sector, particularly corporate finance, fund management and hedge fund management, according to the figures.

New authorisations increased by just under 10% on Q1 2010 and 25% on Q4 2009, its data suggests.

Emerging markets are playing an increasingly important role in ownership of newly authorised entities

North America continues to dominate overall overseas ownership of newly authorised entities in Q2 2010.

But the emerging markets, namely Asia and Africa, are also playing an increasing role, says IMAS.

South Africa, India, Japan, Sri Lanka, Mauritius and Hong Kong all feature as owners of newly authorised entities in Q2 2010.

Asia and Africa’s combined ownership of new authorisations far exceed those of Europe for the quarter, according to the figures.

IMAS says it expects the emerging markets to play an increasingly active role in the
ownership of FSA authorised entities in the future.