The New Talent Alliance, part of the wider Consumer Duty Alliance, has today published new analysis clarifying long-standing inconsistencies in market data used to assess the UK retail investment advice sector.
The analysis, led by Tom Hegarty, Chair of the New Talent Alliance and CEO of Simplybiz, compares two authoritative but fundamentally different FCA data sources:
- Intermediary Market Data (IMD), based on RMAR submissions, and
- The full FCA Register, obtained via a Freedom of Information request and capturing all firms with retail investment advice permissions.
Because these datasets record different firm populations, the Alliance warns that using them interchangeably has fuelled conflicting interpretations of adviser headcount trends, consolidation levels, and market sustainability.
Key findings:
- 14% decline in firm numbers over the past two years (RMAR 2022–24; FCA Register 2023–25).
- Small firms (1–5 advisers) are disappearing fastest, across both datasets.
- Overall adviser numbers remain stable, but more advisers are now concentrated in larger firms (FCA Register)
- Only 171 advisers are under 25, signalling a serious long‑term talent pipeline risk (FCA Register)
Both datasets do confirm a 14% drop in firms over the past two years, with the sharpest decline among small firms (1–5 advisers). While the overall adviser population remains steady, FCA Register data shows that more advisers are joining larger firms. Notably, advisers aged 30–39 have increased by 12%, driven by academy programmes, while the number of advisers under 25 remains very low.
These changes point to a narrowing of diversity in advice models, service propositions, price points and delivery formats — with implications for accessibility and competition.
“The sector cannot plan for the future on inconsistent data” — Tom Hegarty
Commenting on the findings, New Talent Alliance Chair, Tom Hegarty, said:
“Many of the trends we’ve uncovered run counter to the FCA’s vision of a vibrant, competitive and sustainable advice market. In particular, the sharp fall in small firm numbers and the extremely low proportion of young advisers entering the profession signal real challenges ahead for client choice and diversity.”
A call for sector‑wide data discipline
The New Talent Alliance is urging trade bodies, consultants, commentators and researchers to adopt more rigorous data practices to avoid misleading conclusions.
It recommends that all sector analysis should:
- State clearly which FCA dataset is being used
- Avoid comparisons between incompatible data
- Apply like‑for‑like analysis for year‑on‑year comparisons
- Recognise the different firm universes within FCA datasets
Hegarty concluded:
“Our sector cannot deliver better outcomes, support future talent or respond effectively to regulatory expectations if the foundations of our insight are inconsistent. This work provides much‑needed clarity and a shared baseline for understanding how the advice market is really evolving.”
