Numbers of financial advisory firms and advisers have fallen significantly over the last three years, according to Freedom of Information data obtained by Begbies Traynor Group from the Financial Conduct Authority (FCA).

The financial and real estate advisory firm found that the volume of advisory firms has fallen by 15.6% between Q1 2022 and Q3 2025, from 6,283 to 5,304.

Begbies Traynor also highlighted that the figures had especially fallen in the entry-level age group, with the number of financial advisers in the under-25 category slipping by 10.5% over the same timeframe, from 219 to 196. This figure has now dropped below 200 for only the second time since 2020 – the only other time this happened was in Q3 in 2022.

As the pipeline of talent has shrunk, Begbies Traynor also noted that so had the numbers of advisers in the experienced brackets of 40-49 and 50-59. The Begbies Traynor analysis revealed that both figures reached their lowest recorded number in Q3 2025 of 8,762 and 10,285, respectively.

Director at BTG Advisory, Carl Lever, commented: “So often we see that firms are leaving the industry because owners have decided enough is enough, it is time to wind down and exit – even if the company is solvent and successful. A big part of some of those decisions is the ability to find, train and retain good people.

“Understandably, this shrinking pool of firms is resulting in a shrinking number of jobs for the next generation of financial advisers to win, but the next generation of leaders are also hidden in the 40-59 category and as that number decreases, so do the candidates.”

Managing director at MAF Finance Group, Dave Chapman, added: “With the wider business environment losing out on highly skilled financial advisers and firms, it is essential that business leaders understand the options available to them in accessing finance and advice.

“When shortages like this start to appear, the whole industry needs to pull together to support with expert advice and provide the funding needed to help business leaders tackle their respective circumstances and set up for long-term success.”

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