Financial advice in the UK: fewer firms, same number of advisers
By Emma Napier | 13 August 2026 | 3 minute read
The number of firms giving retail investment advice has fallen 15% since 2022, but adviser numbers have barely moved. The market is not shrinking, it is concentrating, and three forces are driving it.
Each year, the FCA’s retail intermediary market data, drawn from the annual RMAR return every intermediary firm must file, gives the clearest read on the shape of the market, and this year’s numbers continue a familiar trend. The number of firms giving retail investment advice has fallen again, down to 4,406 from a peak of 5,190 in 2022.
15% fewer firms, but adviser numbers hold steady
Figure 1: Firms giving retail investment advice and total adviser numbers, 2020ā€“2025
The number of firms has dropped by 784, or 15%, since 2022, falling steadily to 4,970 in 2023, 4,683 in 2024 and 4,406 in 2025. Adviser numbers tell a different story. The count of retail investment advisers has remained broadly flat throughout, at around 37,500, dipping only marginally in the most recent year. Advisers are not leaving the profession, simply regrouping into larger businesses. Three forces are driving that shift.
Regulation weighs heaviest on the smallest
The chart below shows the fall in the number of smaller advice firms. Single adviser firms have fallen by 20% since 2019, whilst there are 18% less firms with 2-5 advisers.
Figure 2: Number of firms giving retail investment advice by size of firm, 2020ā€“2025
The cost of doing business keeps rising. Consumer Duty added a permanent layer of monitoring, evidencing and reporting, and the cost is felt most acutely by smaller firms. The FCA is currently in consultation with the industry on making the Duty more proportionate, an implicit acknowledgement that the weight falls unevenly.
Firms are combining into larger businesses
Consolidation accounts for much of the fall, as advice businesses reform into larger groups. The number of consolidators is the most visible route, and acquisitions continue to grow. For the full picture of who is buying, who is selling and what it means for the market, see NextWealth’s Consolidation of Advice Report 2026.
Emma Napier, Consulting Director, NextWealth
FAQs
How many financial advice firms are there in the UK?
In 2025, 4,406 firms reported retail investment advice revenue to the FCA. That is down from a peak of 5,190 in 2022, a fall of around 15%.
Are financial adviser numbers falling in 2025?
No. The number of retail investment advisers has held broadly flat between 2020 and 2025, at around 37,500. Firm numbers are falling while adviser headcount stays stable, which means advisers are regrouping into fewer, larger firms.
Why is the number of financial advice firms declining?
Three forces are driving the fall. The cost of regulation, notably Consumer Duty, weighs hardest on small firms. Private equity-backed consolidators are acquiring firms. And rising technology expectations raise the cost of keeping pace. Each acquisition removes a firm from the count without removing its clients.
Is financial advice a dying profession?
No. Demand is growing, with only around one in seven UK consumers currently receiving regulated advice. The market is concentrating rather than disappearing, leaving fewer but better-resourced firms.