The FCA’s Understanding the Financial Advice Market publication provides a data‑led overview of how the UK financial advice sector is operating, evolving and responding to consumer needs. The report draws primarily on the FCA’s 2025 Financial Advice Firms Survey, alongside wider regulatory data, the report offers a detailed picture of adviser capacity, business models, client demand and the pressures shaping the market. At a time when financial planning is becoming increasingly important for consumers navigating retirement, investment decisions and long-term wealth management, the findings offer important insight into both the resilience of the advice sector and the challenges it faces.
Market structure and adviser capacity
The FCA’s findings show a market that remains stable in adviser capacity despite continued structural change. There are currently around 31,000 registered financial advisers operating across the UK, a figure that has remained broadly consistent since 2021. This stability in adviser numbers comes despite a reduction in the number of authorised advice firms, reflecting continued consolidation across the market. The FCA analysed responses from more than 4,100 advice firms, highlighting a sector where larger firms are increasingly accounting for a greater share of assets under advice, while smaller firms continue to play an important role in delivering local, relationship-led advice. The data also highlights the scale of the sector. Advice firms collectively manage approximately £1 trillion in assets under advice for more than 4 million retail clients, reinforcing the significant role advisers play in the UK’s broader financial ecosystem.
Consumer confidence and value of advice
One of the strongest themes in the FCA’s findings is the high level of consumer confidence in regulated advice.
- 87% of consumers said the advice they received was clear and understandable
- 85% of consumers reported feeling confident in the advice they received
- 63% of consumers said they would be very likely to use the same adviser again
These figures reinforce the value of professional financial advice in helping consumers make informed decisions about pensions, investments and long-term financial planning. At a time when financial decisions are becoming more complex, trust remains one of the sector’s strongest assets.
The advice gap remains a major opportunity
While the regulated advice market remains strong, the FCA’s findings also highlight a persistent advice gap. Only a relatively small proportion of UK adults currently access regulated financial advice, despite millions holding substantial cash savings that may not be working effectively toward long-term financial goals. This gap presents both a challenge and an opportunity for the sector. For advice firms, it raises important questions around accessibility, affordability and how advice models can evolve to serve a broader segment of the market, particularly the mass affluent consumer who may not meet traditional wealth thresholds for ongoing advice. As the regulator continues its work on the advice-guidance boundary, this area is likely to remain a major focus for the market.
Pensions and retirement remain at the core
Pensions and retirement planning remain at the centre of the UK advice market. The FCA identifies retirement-related advice as the single largest area of client demand, reflecting the long-term shift from defined benefit pensions to defined contribution arrangements. As individuals take on greater responsibility for funding and managing retirement income, the role of advisers in retirement planning continues to grow in importance. This trend is unlikely to slow, particularly as an ageing population and pension freedoms continue to reshape retirement decision-making.
Technology, innovation and advice quality
Technology is increasingly becoming a key differentiator between advice firms. The FCA highlights digital engagement, data analytics and artificial intelligence as emerging drivers of competitive advantage, with firms using technology to improve efficiency, strengthen client engagement and enhance advice delivery.
However, adoption remains uneven. Larger firms are typically further advanced in their use of technology, while smaller firms often face greater investment and operational barriers. The FCA also links stronger technology adoption to improved governance, oversight and advice quality, particularly within the framework of Consumer Duty. For many firms, technology is no longer simply an efficiency tool, it is becoming central to regulatory compliance and client outcomes.
Talent and succession challenges
While adviser numbers remain stable, workforce sustainability remains an important longer-term issue. The FCA’s findings point to ongoing challenges around adviser recruitment, succession planning and diversity across the profession.
As experienced advisers approach retirement, firms will need to focus on attracting and developing the next generation of talent to maintain capacity and support future growth. This is likely to become increasingly important as client demand for financial planning continues to rise.
What this means for advice firms
The FCA’s latest findings point to a sector that remains resilient, trusted and commercially significant, but one that is also evolving quickly.
For advice firms, the strategic priorities are becoming clearer:
- Investing in technology to improve efficiency and service delivery
- Exploring more accessible advice models to address the advice gap
- Strengthening Consumer Duty governance and evidence frameworks
- Developing adviser talent and succession pipelines
- Assessing acquisition and consolidation opportunities as the market continues to mature
Firms that adapt successfully to these structural shifts are likely to be best positioned for sustainable growth.
Outlook
Overall, the FCA’s analysis points to a financial advice market that is resilient but evolving. While consolidation and technological change continue to reshape how advice is delivered, the regulator’s focus remains on supporting a competitive, innovative and sustainable market that delivers fair value and good outcomes for consumers.
How Complyport Can Help?
- Consumer Duty and Advice Governance: Complyport helps firms embed Consumer Duty into their advice frameworks, ensuring that advice processes, client servicing models and ongoing review structures are designed to deliver fair value and good consumer outcomes. We support firms in strengthening governance, oversight and evidencing frameworks so they can clearly demonstrate how client outcomes are monitored, assessed and improved over time.
- Tailored Training: Maintaining adviser quality and supporting the next generation of talent remains critical to the long-term resilience of the financial advice market. Complyport delivers tailored, firm-specific training designed around each firm’s business model, regulatory obligations and operational risks. This includes bespoke training on Consumer Duty, suitability, advice standards, governance and wider FCA requirements, helping firms strengthen adviser competence, improve oversight and embed a strong culture of compliance across the business.
- Specialist Compliance Expertise and Strategic Advisory Support: Navigating an increasingly complex regulatory environment requires experienced, practical compliance support. Complyport’s consultants bring decades of financial services regulatory experience, working with advice firms across a wide range of compliance, governance and operational challenges. Our team provides practical, commercially focused guidance on FCA requirements, regulatory change, supervisory engagement and strategic compliance planning, helping firms manage risk effectively while supporting sustainable business growth.
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