The latest Retail Mediation Activities Return (RMAR) data published by the Financial Conduct Authority at the end of last week demonstrates the dangers of growth for the sake of growth, according to national IFA partnership Continuum.

The financial advice market continues to narrow as the number of firms with over 50 advisers rose by a further 9% to 51 firms in 2022.

The number of financial advice firms in total also continued to fall as consolidation within the market continues to narrow the number of small firms. The number of firms fell to 5,062 (2021: 5,118), with a 2% fall in firms with just one adviser to 2,381, and a 1% fall to 2,093 in the number of firms with between 2 and 5 advisers.

However, firms over 50 advisers also have a lower average revenue per adviser and are the only sector which has reported an average pre-tax loss.

Chart: Financial adviser firms – average revenue/profit 

Number of firms Average retail investment revenue per adviser (£) Average total revenue per firm (£) Average pre-tax profit per firm (£) Number of firms making pre-tax profit
1 adviser 2,355 186,060 233,030 101.415 2,246
2-5 advisers 2,030 223,517 740,417 240,190 1,912
6-50 advisers 488 229,626 3,154,191 629,597 451
Over 50 advisers 43 190,005 70,339,581 -753,225 31

Source: FCA Retail Intermediary Market 2022

The data in the table is based on only those firms that submitted a full year of revenue on section B, which is a smaller population of firms.

Click here to read the full article 



020 7071 3945


Throughout our site you will find links to external websites. Although we make every effort to ensure these links are accurate, up to date and relevant, we cannot take responsibility for pages maintained by external providers.