The global financial advice market appears to be dominated by firms that have more than $50m (£38.9m, €43.7m) in funds under advice, according to IA’s Adviser Pulse Survey.
In our annual survey, we asked advisers from across the world what their company’s total funds under advice in US dollar terms was.
With responses from Hong Kong, Singapore, the UK, Europe, the Middle East and Africa – 53% of respondents confirmed that their firms advise on more than $50m.
The remaining 47% were fairly evenly split below that figure.
Significant mergers and acquisition activity over the past few years, undoubtedly, has played a significant role in the results.
Highly acquisitive firms; such as St James’s Place in the UK, Hong Kong and Singapore, as well as AFH Group in the UK, have reshaped their respective markets.
The number of smaller advice firms ceasing operations after their principal or sole adviser decides to retire has also been a big driver of change.
Costs, regulation, recruitment challenges and the rise of technology are all threats to smaller businesses.
As highlighted by a report from UK trade association Libertatem, just 6% of UK advisers are aged 35 or younger.
The advice industry, globally, is facing an uphill battle. If the pace of acquisitions continues unabated, the sector will look very different in a few years’ time.
