United Kingdom (UK) Financial Advisors Market Size, Trends and Analysis by Financial Advice Firms and their Customers, Opportunities and Threats, 2023 Update

United Kingdom (UK) Financial Advisors Market Size, Trends and Analysis by Financial Advice Firms and their Customers, Opportunities and Threats, 2023 Update
Summary

The UK’s financial advice market has performed strongly following the initial impact of the COVID-19 pandemic, with average revenues and profits increasing. The composition of the market is steadily changing amid a wave of consolidation thanks to ready sellers and willing buyers. Single advisor firms still dominate, but there has been growth in the number of medium-sized firms. Key financial advisor concerns have changed over the last 12 months, with inflation coming to the fore. An increased focus on environmental, social, and governance (ESG) investing is considered to be the key opportunity in the market; exploring new business models is another.

This report discusses the key trends shaping the UK market for financial and investment advice over the course of 2022. It covers the size and growth of the financial advice market in the UK (including profitability), merger and acquisition activity, as well as the key threats and opportunities cited by advisors.

ScopeThe number of financial advice firms fell by 0.4% in 2021, with 29 fewer firms in the market compared to 2020. Conversely, the number of financial advisors increased by 1.2%.Retirement is the number one driver for consumers to seek financial advice, with 17.6% of financial advisors stating it as the key driver. Setting up and selling a business is in second place, cited by 13.1% of respondents.In 2022, 38.0% of financial advisors considered rising inflation a key business threat, compared to 16% in 2021. Inflation has reached 40-year highs, with implications for advisors’ businesses and client care.Reasons to BuyUnderstand the latest data on the size and composition of the UK financial advice market.Find out about the latest M&A deals in the consolidating financial advice space.Learn who uses financial advisors and what their motivations are for doing so.Discover what financial advisors consider to be the main opportunities and threats for their business.Understand the current regulatory challenges facing financial advisors.Learn more about the growing competitive threat from banks, investment managers, and DIY platforms.Uncover the opportunities offered by ESG investing and new business models.