The financial advice sector saw a modest rebound in the first quarter of 2025, with a net increase of 98 advisers (0.63%) pointing to a reversal from the slight decline recorded in Q4 2024, according to Adviser Ratings‘ latest Musical Chairs report.
A total of 125 new advisers were added to the Financial Adviser Register, making the first three months of the calendar year the second-highest new entrant quarter on record, behind only Q3 2024. This figure represents a 54% year-on-year increase in new adviser registrations.
In addition to new entrants, 244 advisers returned to the register, helping offset the 246 who ceased during the quarter. Overall, adviser numbers have hovered around 15,500 for the past two years, with Q1 closing at 15,575.
Q1 also saw 476 advisers change licensees, a figure in line with the five-year quarterly average of 477. However, this marks the lowest level of Q1 switching activity in five years, with the report’s authors stating that smaller privately owned licensees continued to absorb the bulk of this activity.
Privately owned (1–10) and (11–100) segments grew by 1.5% and 2.4% respectively, while larger groups experienced outflows. Privately owned licensees now represent 78.2% of all advisers, pointing to a shift away from institutional models.
Key Q1 findings:
- 0.63% net adviser growth, reversing last quarter’s decline
- Licensee switching steady at 476 advisers – 3.06% of advisers switched
- Privately owned licensees make up 78.2% of advisers
- 125 advisers joined the profession
