The FCA has published the findings from its latest Financial Adviser Survey, providing an updated picture of how the UK financial advice market is evolving.
The survey brings together responses from more than 4,100 financial advice firms; alongside analysis of data it already holds on around 31,000 advisers. Firms responding to the survey advise on around £1 trillion of assets for more than 4.1 million clients.
Overall, it shows a market that remains broadly stable, even as firms adapt to consolidation, new business models and technology.
Adviser demographics
The survey found that adviser numbers have remained broadly steady at around 31,000 since 2023, despite a 15% fall in the number of authorised advice firms since 2021, pointing to consolidation across the market rather than a reduction in advice provision.
Around half of advisers are under the age of 50, with the proportion under 40 rising since 2023.
Women account for around 18% of financial advisers, despite being part of around 60% of advised client relationships, highlighting an opportunity for the sector to better reflect the consumers it advises by strengthening recruitment, retention and progression.
Large advice groups, those with over 50 advisers, just 1% of firms, provide advice on half of all client assets. However, the FCA says "all firms play an important role through relationship led and local advice".
Simplified advice and AI
Financial advice remains concentrated among older and wealthier consumers, with regulated advice currently reaching only around 9% of UK adults. The survey found that nearly a third of firms, and three fifths of large firms, are considering offering a form of simplified advice propositions to help expand access, particularly for mass affluent consumers.
Meeting clients face-to-face remains important, with 99% of firms meeting clients in person. But firms are also using technology, and many are considering using artificial intelligence (AI).
Firms are exploring AI in three main areas: supporting client engagement, strengthening compliance and risk monitoring, and improving operational efficiency through automation (for example, for meeting notes, data extraction and analysis).
While interest is broad, fewer firms report they will deploy AI within advice processes in the near term (around 14% of small firms and 38% of medium‑sized firms, rising to just over half of large firms).
Chris Jones, academy director at Quilter, said: “The FCA’s survey shows encouraging signs that the advice profession is starting to renew itself. The average adviser age has fallen to the late 40s, reflecting an increase in younger advisers entering the market and showing that entry routes into the profession are beginning to gain traction. The average age of people joining Quilter Academy is now 37.
"That's important because financial advice is built on long term relationships. Clients often stay with the same adviser for decades, through accumulation, retirement and later life planning. Younger advisers enable continuity, allowing clients to benefit from working with someone who knows their circumstances, goals and family situation over the entirety of their financial journey.
"However, the data also shows where progress remains uneven. Only 18% of advisers are women, despite women making up a much larger share of paraplanners and support staff. That points to a progression challenge rather than a lack of interest in the profession, and it limits the industry’s ability to build a workforce that reflects the clients it serves over the long term.
"The FCA’s findings underline why this work needs to continue. A younger adviser profile is a positive step, but flat overall adviser numbers and a persistent gender imbalance show that existing pipelines are not yet strong enough on their own. If the profession wants clients to benefit from consistent advice over a lifetime, it needs to keep investing in new entrants and do more to explain what a modern career in advice looks like and who it is open to.”
Rob Hillock, head of personal financial planning at financial services consultancy Broadstone, commented: “The FCA’s findings paint a picture of a market that is holding steady in capacity but evolving rapidly in structure. Adviser numbers remain which suggests the profession is proving resilient, even as consolidation reshapes how services are delivered.
“Technology and AI are clearly becoming a differentiator, but adoption remains uneven, creating a growing divide between firms that are investing in more efficient, data-driven advice models and those that risk falling behind as client expectations continue to shift.
“The continued focus on retirement income advice is also important. It’s encouraging that firms are responding to the FCA’s thematic review, but this remains a complex area where good outcomes depend on both robust processes and clear, ongoing communication with clients."
