UK financial advice market stable, firms consolidate
The Financial Conduct Authority (FCA) has published findings from its Financial Adviser Survey, revealing a broadly stable UK financial advice market. The survey highlights ongoing consolidation among firms and opportunities for broader consumer access.
Consolidation, not contraction
The survey, drawing on responses from over 4,100 firms and data on 31,000 advisers, reveals that firms collectively advise on approximately £1 trillion of assets for more than 4.1 million clients.
Large firms manage about 50 percent of these assets, yet all firms contribute significantly through local and relationship-led advice.
Despite a 15 percent decrease in the number of authorised advice firms since 2021, the total number of advisers has remained broadly steady at around 31,000 since 2023.
This trend indicates a market-wide consolidation rather than a reduction in the overall provision of financial advice to consumers.
Bridging the advice gap
The survey identifies areas for market development, noting that women comprise only 18 percent of financial advisers, contrasting with their involvement in approximately 60 percent of advised client relationships.
Financial advice remains concentrated among older and wealthier demographics, with regulated advice reaching just 9 percent of UK adults.
To broaden access, nearly a third of firms are considering simplified advice models, particularly for mass affluent consumers.
The FCA also observed positive engagement with the Consumer Duty, especially within pensions and retirement advice, which represents 69 percent of clients' main advice objectives.