The UK’s wealth management market has become increasingly concentrated, with the 10 largest firms by client numbers now serving 89% of discretionary clients, according to new Financial Conduct Authority (FCA) data.
This represents a 19 percentage point increase from 70% when the regulator conducted its first wealth management survey in 2022.
The findings form part of the FCA’s 2026 Wealth Management Survey Report, which covers around 400 firms. The regulator said that firms supervised within its wealth management portfolio support more than 5.5 million retail clients and manage almost £1trn in assets.
Further consolidation is expected, with 41% of surveyed firms planning to acquire another business, grow revenue or increase their client base by more than 25% over the next two years. By contrast, 18% are considering winding down or selling all or part of their client base.
The FCA said consolidation could support efficiency and growth by allowing firms to pool resources, expertise and technology, but warned that rapid growth which is not managed effectively could lead to “poor client service, weaknesses in business continuity and in some cases disorderly failure”.
It added: “As firms grow, governance, oversight and controls need to keep pace, so clients receive consistent outcomes.”
Around 29% of wealth managers also offer financial advice, which the regulator said can provide clients with a more joined-up service.
However, the FCA identified mixed outcomes when it came to fair value, finding that some firms had not fully considered the impact that pricing structures, including fixed fees, can have on clients with smaller portfolios.
Its Financial Lives 2024 survey found that 17% of adults with investible assets of more than £100,000 who used a named wealth management firm were concerned that fees were high, hidden or complex.
The regulator said smaller specialist firms “continue to play a vital role” in providing tailored services to clients.
Lucy Castledine, director of consumer investments at the FCA, said the regulator wanted to support a “competitive, innovative and resilient wealth market” where firms could grow responsibly and clients received clearer information, better support and good outcomes.
Rob Hillock, head of personal financial planning at consultancy Broadstone, said: “The FCA’s findings show how quickly consolidation is reshaping the wealth management market, with the largest firms now serving a much greater share of discretionary clients.
“Greater scale can support investment in technology, compliance and client service, but consolidation must ultimately translate into better outcomes for clients.
“The real test will be whether larger platforms can use their scale to deliver a better, more consistent client experience without losing the personal service and responsiveness that many investors value.”
