Almost 8,000 firms have been de-authorised by the Financial Conduct Authority over the past eight months, including 800 advice firms.
Research by ISS Market Intelligence revealed 7,860 firms were de-authorised in the period, a drop of 2.8 per cent.
It brings the total number of financial services firm to 70,131.
‘Regulation has hindered ability for industry to share simple information’
While the number of unique individuals also reduced, by 1.4 per cent, to 220,679.
The majority of firms de-authorised were in the credit broking space, but 521 offered investment advice, and 285 were in mortgage advice.
On the other hand, 4,402 firms joined the register during the past eight months, making the net number of firms departing from the register 3,458.
Of the 4,402 firms which joined the register, 442 offer investment advice and 409 provide mortgage advice.
When it came to the 30 largest investment advice and mortgage advice the number of firms increasing their adviser headcount was almost equal to those reducing them.
Quilter had the largest increase, adding 837 advisers during the eight months.
While St James’s Place led the overall adviser headcount table and added 43 advisers in the last eight months.
Openwork, which came after SJP, had almost half as many advisers and slightly reduced their adviser headcount.
Rank
Firm Name
Number of Advisers
Change since Dec 2024
1St. James’s Place Wealth Management Plc5217432Openwork Limited2854-53Quilter Financial Services Limited20788374True Potential Wealth Management LLP1082-152 Plan Wealth Management Limited68686Evelyn Partners Financial Planning Limited405-97Best Practice IFA Group Limited404208Fairstone Financial Management Limited39389The On-Line Partnership Limited367-1510HW Financial Services Limited363011M&G Wealth Advice Limited3581012New Leaf Distribution Limited3463913Sense Network Limited3341514Scottish Widows Schroder Personal Wealth Limited330-1515Quilter Financial Advisers Ltd3148516Evelyn Partners Investment Management Services Limited285817Schroder Investment Management Limited278-118ValidPath Limited2656519Mercer Limited257-1320Quilter Cheviot Limited2456621Evelyn Partners Discretionary Investment Management Limited2434222Wesleyan Financial Services Ltd241-323Chase de Vere Independent Financial Advisers limited226-624Evelyn Partners Securities2231125Raymond James Wealth Management Limited220-126Evelyn Partners Investment Management LLP2152327Tilney Discretionary Portfolio Management Limited2141228Succession Financial Management Limited209629AFH Independent Financial Services Limited203430Quilter Financial Planning Solutions Limited201-18
Source: ISS Market Intelligence
Benjamin Reed-Hurwitz, head of research development, EMEA and North America at ISS Market Intelligence said: “The financial services industry is continually evolving and adapting.
“While keeping pace with developments across various areas of the market presents a significant challenge, it remains a key priority for sales and marketing teams aiming to succeed in the industry.”
The report also found that in the investment advice space, most firms still prefer to offer independent, rather than restricted, advice.
The number of restricted firms has dropped by over 25 per cent from 848 in 2016 to 632 in 2023.
However, ISS said the picture is more complex, as large restricted firms with many advisers will only count as one firm.
tara.o’connor@ft.com
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