The structure of the UK advice market is changing – and changing quickly.

Over the past two years, the number of advice firms has reduced, with the shift most noticeable among smaller firms. At the same time, the overall number of advisers has remained broadly stable, as new entrants increasingly begin their careers through academy routes within larger organisations.

In other words, consolidation is continuing to reshape the structure of the sector.

I’ ve written and spoken at length about the three key factors I believe will shape the advice sector in 2026: regulation, technology, and consolidation. It’ s this third theme that I want to focus on in this article.

The UK advice sector is undoubtedly strengthened by its diversity, with firms of all sizes and models offering a range of different services to different client groups. For many years, that breadth has meant consumers could access a wide range of advice propositions tailored to their individual circumstances.

However, those demographics are evolving. While this creates challenges, it also reflects a sector in transition – one that is actively investing in its future talent pipeline.

" Over the past two years, the total number of advice firms has reduced by around 14 %"

Data from the FCA’ s intermediary market statistics illustrates this clearly. Over the past two years, the total number of advice firms has reduced by around 14 %, with that reduction most heavily weighted towards smaller firms.

At the same time, the adviser population is beginning to shift. The average age of advisers is now 49, slightly lower than it was two and a half years ago. This is largely due to the positive recruitment of

Tom Hegarty CEO, Simplybiz

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