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

Publisher GlobalData
Published Apr 17, 2023
Length 42 Pages
SKU # GBDT17916023

Description

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.

Scope
  • The 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 Buy
  • Understand 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.

Table of Contents

42 Pages
    • Market overview
    • Key findings
    • Critical success factors
    • The number of advice firms declined by 0.4% in 2021
    • Consolidation is changing the structure of the market
    • Average revenues and profits grew in 2021
    • The financial advice industry remains focused on retirement
    • However, financial advice is only reaching a small proportion of consumers
    • Financial advisors’ typical client base constitutes older, affluent individuals
    • Threats: Inflation, a financial market downturn, and the regulatory burden are the key concerns of advisors
    • Rising inflation has created various challenges
    • Financial market downturn: Threat or opportunity?
    • Regulation: Consumer Duty is the key focus for 2023, but there is other regulatory activity to be aware of
    • Competition from banks and investment managers is increasing
    • Opportunities: ESG investing, a financial market downturn, and the aging population top the list
    • ESG investing is considered the number one opportunity by financial advisors
    • The aging population and intergenerational wealth transfer bring new opportunities for financial advisors
    • The emergence of new business models
    • Abbreviations, acronyms, and initialisms
    • Definitions
    • Methodology
    • Secondary sources
    • Further reading
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