Consolidation in the adviser space has not curtailed access to advice and continues to reshape the market, with a third of the largest firms on the hunt to buy other firms or client banks, Financial Conduct Authority data has found.
Its 2025 Adviser Survey said consolidation supports retiring advisers who want to ensure their clients continue to get the best advice.
It added: "The strong resource behind most consolidating firms can support a smooth transition that results in good client outcomes.
"Well-managed acquisition and integration can create real value for clients, employees, buyers and sellers of regulated entities."
It added on M&A: "Where groups seek to grow quickly through acquisition, resourcing must keep pace with the group's increasing scale and complexity.
"Where integration has been poorly managed and resourcing has not kept pace with growth, we have seen harm to businesses and their clients."
Shout out for small firms
The survey, released today (23 April), also found that small firms continued to play a "vital role". Firms with between one and five advisers played a key role in local communities, it said.
"They often provide highly personalised, relationship-based advice and trusted long-term support."
The FCA said that many smaller firms reported expansion plans in the next two years, with 18% planning or considering plans to increase revenue by more than 25%, and 13% planning or considering increasing their client base by 25% or more, particularly in regions with strong local demand.
Overall numbers
The survey from the regulator stated that large advice groups, with 50 or more advisers (just 1% of all firms) provided advice to half of all client assets.
It added that there was a long tail of smaller firms that continued to serve a wide and diverse client base.
The FCA said: "By using data to better understand how the advice market is evolving, we aim to support a sustainable, growing advice sector that delivers consistently good outcomes for consumers.
"The findings show a sector that has engaged positively to achieve the right outcomes for its clients, and where many firms are looking for ways to improve client outcomes - particularly in pensions and retirement income advice."
