The 10 largest wealth management firms accounted for 89% of all UK wealth management clients in 2024/25, according to figures published by the FCA today.
The figure has jumped from 70% of clients in 2022/23.
The FCA’s ‘Wealth Management Survey Report – 2026’ focuses on discretionary portfolio management, where firms manage almost £1trn of assets and support more than 5.5m retail clients.
The findings are based on survey data from around 400 wealth management firms, the regulator said. The identity of the top 10 firms was not disclosed in the report.
The survey found that wealth management firms were confident about the future, with 41% of those surveyed planning to acquire another firm, 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 books.
The FCA said: “Consolidation can support efficiency and growth by helping firms pool resources, expertise and technology. It can also support stronger governance and financial resilience.”
Rob Hillock, head of personal Financial Planning at consultants 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. As firms grow through acquisition, maintaining service quality will be critical to expanding in a sustainable and effective way.”
The report also concluded that the sector remains strongly relationship-led, with face-to-face contact still important for onboarding, supporting clients and client decisions. It said firms are making greater use of contact centres and digital channels for tasks such as investing, withdrawing funds and sending instructions.
The report noted a marked increase in the use of AI by wealth management firms, with 45% considering AI while 13% already use in-house or third-party AI tools.
The report said: “Although overall use remains limited, firms adopting or considering AI represent a large share of the market. However, it is also moving quickly and adoption may now be higher, given our data only represents submissions captured at the time of collection. Surveying firms today would likely produce higher figures given momentum with AI discussion.”
The report also revealed that more than 92% of firms outsource part of their business, meaning they rely on another provider for some services. It is most common for technology, trade execution, assurance and oversight.
The FCA said: “Outsourcing can give firms access to expertise, technology and infrastructure they do not have in-house. It can also help firms scale and focus on core client-facing activities.”
The regulator said it will not repeat the wealth management survey in the coming year but will aim to issue a shorter version in 2027 focused on portfolio management activity.
• FCA Wealth Management Report 2026
Promote your vacancy to thousands of professionals on Financial Planning Jobs
Our specialist jobs service Financial Planning Jobs can help you reach nearly 12,000 financial professionals. You can set up an Employer Profile and post your job the same day on Financial Planning Jobs (terms apply). Dozens of Financial Planning and Paraplanning firms have used our affordable service to recruit new talent.
