There’s been a 14% decline in UK retail investment advice firm numbers over the past two years, according to new analysis of official data.
Small firms with between one to five advisers are disappearing fastest, according to The New Talent Alliance, part of the wider Consumer Duty Alliance.
Its analysis of market data sources shows that overall adviser numbers remain stable, but more advisers are now concentrated in larger firms.
Notably, advisers aged 30–39 have increased by 12%, driven by academy programmes, while the number of advisers under 25 remains very low.
Only 171 advisers are under 25, signalling a serious long‑term talent pipeline risk, the Alliance warned.
Tom Hegarty, New Talent Alliance Chair, said: “Many of the trends we’ve uncovered run counter to the FCA’s vision of a vibrant, competitive and sustainable advice market. In particular, the sharp fall in small firm numbers and the extremely low proportion of young advisers entering the profession signal real challenges ahead for client choice and diversity.”
Its analysis was based on Intermediary Market Data (IMD), based on RMAR submissions, and the full FCA Register, obtained via a Freedom of Information request and capturing all firms with retail investment advice permissions.
Because the datasets record different firm populations, the Alliance warned that using them interchangeably has fuelled conflicting interpretations of adviser headcount trends, consolidation levels, and market sustainability.
The New Talent Alliance is urging trade bodies, consultants, commentators and researchers to adopt more rigorous data practices to avoid misleading conclusions.
It recommends that all sector analysis should:
• State clearly which FCA dataset is being used
• Avoid comparisons between incompatible data
• Apply like‑for‑like analysis for year‑on‑year comparisons
• Recognise the different firm universes within FCA datasets
Mr Hegarty said: “Our sector cannot deliver better outcomes, support future talent or respond effectively to regulatory expectations if the foundations of our insight are inconsistent. This work provides much‑needed clarity and a shared baseline for understanding how the advice market is really evolving.”