The number of directly authorised (DA) intermediary firms and advisers operating in the retail advice space is shrinking, analysis by Network Consulting has shown.

New data obtained by through a recent Freedom of Information (FOI) request to the Financial Conduct Authority (FCA) highlight notable shifts across both wealth and mortgages over the past five years, with contraction most visible among wealth firms.

Between 2020 and 2025, the total number of DA retail advice firms operating in the mortgage and wealth markets fell by 17.2%, representing a net loss of 1,853 firms.

Firms intermediating in both wealth and mortgages have seen the steepest decline, by 24.4%, representing a reduction of 957 firms. Wealth only firms have also contracted sharply, falling 19.4% at a loss of 1,054 firms.

By contrast, mortgage only firms have remained comparatively resilient, growing 11%, which is an increase of 158 firms between 2020 and 2025, although they have dipped slightly from a 2023 peak of 1,640 firms, falling by 55 firms since. However, when combined with all firms intermediating in mortgages then the decline was 799 firms (15%).

CEO at adviser network Rosemount Financial Solutions (IFA), Ahmed Bawa, commented: “We have seen increased interest from DA advisers in recent months, and it’s easy to understand why.

“The compliance requirements faced by advisers continues to increase, taking up more time the adviser could devote towards doing what they do best – helping their clients secure their long-term financial future.

“Similarly, the operational and technological support on offer by adopting the AR route opens up new opportunities for advisers, allowing them to be more proactive and strategic in building their own business. It’s a trend that I would expect to see continue in 2026 and beyond as the benefits of working within a network become even clearer.”

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