Support needed as volume of financial advisory firms and experienced advisers continue to fall

Highlights:

• From Q1 2022 – Q3 2025 number of financial advisory* firms fell 15.6% from 6,283 to 5,304
• As of Q3 2025, there were 196 financial advisers* ‘Under 25’, a decrease of 17.6% year-on-year, and 27.1% quarter-on-quarter
• Since Q1 of 2022, there was a decrease in financial advisers aged between 40- 49 (-5.7%, Q3 2025 8,762) and 50-59 (-9.4%, Q3 2025 – 10,285)
• Conversely, the ‘Over 60’ age category has grown by 11.8% or 746 advisers during the same period (Q1 2022 – Q3 2025)
• Begbies Traynor says more firms leaving the market through insolvency or voluntary wind down will feed lower numbers of advisers and visa versa – restructuring options needed

Numbers of financial advisory firms and advisers have fallen significantly since the start of 2022, especially in experienced and entry-level age groups, according to data obtained by Begbies Traynor Group from the Financial Conduct Authority (FCA).

The financial and real estate advisory firm found the volume of financial advisory firms fell 15.6% from 6,283 in Q1 2022 to 5,304 in Q3 2025 whilst numbers of financial advisers in ‘Under 25’ (-10.5%, Q1 2022 – 219, Q3 2025 – 196) , ’40-49’(-5.6%, Q1 2022 – 9,285, Q3 2025 – 8,762) and ’50-59’ (-9.4%, Q1 2022 – 10,285 , Q3 2025 – 11,348) age groups also dropped.

Concerningly, financial advisers ‘under 25’ dropped below 200 for only the second time since 2020 – the only other time this happened was in Q3 in 2022. As the pipeline of talent shrinks, so has the number in the experienced bracket of 40-49 and 50-59. Both reached their lowest recorded number in Q3 2025 of 8,762 and 10,285 respectively.

In contrast, the number of financial advisers ‘Over 60’ has increased has increased by 11.8% since Q1 2022, staying above 7,000 advisers since Q2 2024.

Carl Lever, Director at BTG Advisory, said:

“This data shows that more than 1,000 advisory firms have left the industry or have been consolidated since the start of 2020. So often we see that firms are leaving the industry because owners have decided enough is enough, it is time to wind down and exit - even if the company is solvent and successful. A big part of some of those decisions is the ability to find, train and retain good people.

“Understandably, this shrinking pool of firms is resulting in a shrinking number of jobs for the next generation of financial advisers to win, but the next generation of leaders are also hidden in the 40 -59 category and as that number decreases, so do the candidates.

“However, with fewer firms there is an opportunity for those that remain to deliver advice to more clients needing their support. This is very positive from a business stability perspective and should deliver the financial wiggle room needed to expand and create more jobs for the next generation that will help serve a larger client base. With the correct structure, backing and leadership these remaining firms could create a huge opportunity to build a legacy.”

Dave Chapman, Managing Director at MAF Finance Group, said:

“With the wider business environment losing out on highly skilled financial advisers and firms, it is essential that business leaders understand the options available to them in accessing finance and advice.  When shortages like this start to appear, the whole industry needs to pull together to support with expert advice and provide the funding needed to help business leaders tackle their respective circumstances and set up for long-term success.

“Through collaboration, we can help businesses navigate every step of their journey with confidence. Funding is an essential part of growth, and we can all work together to make sure the advisory firms and their clients gain access to the money they need to bring stability and support growth in the immediate future.”