PFS membership has defied predictions and soared since the Retail Distribution Review to rise by 15,000 to nearly 40,000 - a record total, PFS chief executive Keith Richards has revealed in an exclusive interview with Financial Planning Today.

Mr Richards said membership of the professional body, which awards the Chartered Financial Planner designation and others, had been expected to drop by 5,000 to 25,000 post RDR as financial advisers, especially older ones, quit the industry in the face of a new regulatory regime.

However, the opposite has happened with membership soaring in the past six years thanks to an influx of graduates.

Growth in the numbers of female planners and Paraplanners and a sharp rise in the number of Chartered Financial Planners has boosted numbers and growth has accelerated since the Pension Freedoms arrived in 2015.

Mr Richards said current total membership of 39,000 was an all-time record and based on current trends this would top 40,000 next year. There are now 6,000 Paraplanner members and 22,000 members attended CPD events over the past year.

He said: "After RDR many people were forecasting a large exit and in our planning we were expecting our numbers to drop eventually from 25,000 to 20,000 - losing perhaps 25-30% of membership - but this didn't happen. In fact the opposite, membership has grown very strongly in the past few years.

"Even in the first year post RDR numbers increased, which surprised us."

He said that some members did indeed quit the industry as it was changing to a profession but numbers were much smaller than forecast and after analysis it appeared many were already semi-retired.

He said in recent years many graduates, some disillusioned by poorer-paying careers elsewhere, had joined the profession and were attracted by the opportunity become a Chartered Financial Planner.

He said: "There is a glut of degree holders in law, for example, and Financial Planning offers a career as good as anything in accountancy or the law so we're attracting more people seeking a professional career."

He admitted, however, that there was still a need to spread the word about how rewarding a career as a Chartered Financial Planner could be as there was evidence some graduates, almost by default, were opting for careers in banking or accountancy. The PFS launched its Aspire programme and an academy to encourage more graduates to enter the profession.

Mr Richards said demand for financial advice and financial advisers appeared to grow significantly following the Pension Freedoms in 2015. 

He added, however: "There was an increasing demand for advice even before the Pension Freedoms but since the Freedoms it has become even more evident."

Mr Richards said the PFS expected further growth in membership over the next 2-3 years but that the record growth seen in recent years may slow down.