The UK’s appointed representative market is becoming more concentrated, with fewer principal firms overseeing a largely stable number of representatives while revenues continue to increase across financial services sectors.
Research from Enness Global shows the number of principal firms operating within the Financial Conduct Authority’s appointed representative (AR) framework fell by 5.3% over the year to March 2026.
The number of principal firms declined from 2,568 in March 2025 to 2,431 in March 2026. Over the same period, the total number of ARs edged down by just 0.7%, from 33,570 to 33,347.
As a result, the average number of ARs per principal firm increased from 13.1 to 13.7, representing a 4.9% rise year-on-year.
According to the analysis, this reflects a longer-term trend towards consolidation, with fewer principal firms overseeing a growing share of AR activity across the financial services sector.
Despite the reduction in principal firms, revenue generated by ARs continued to grow. Across regulated financial services activities, ARs generated an estimated £13.14bn in revenue during 2025, up 7.1% from £12.27bn in 2024.
General insurance and protection remained the largest regulated sector by revenue, generating an estimated £4.03bn during 2025. Consumer finance followed at £3.33bn, while consumer investments generated £2.85bn.
Consumer finance recorded one of the strongest increases in regulated revenue, rising by 11.6% year-on-year. Wholesale financial markets saw growth of 12.3%, while pensions and retirement income revenue increased by 10.4%.
Revenue growth was also recorded across non-regulated financial services activities. Estimated AR revenue in this area increased by 8.3% to £24.53bn in 2025.
Wholesale financial markets generated the largest share of non-regulated revenue at £9.83bn, while general insurance and protection contributed £9.31bn.
Investment management recorded the strongest growth in non-regulated revenue, increasing by 51.7% year-on-year to £426.5m. Consumer investments rose by 14.2%, while general insurance and protection increased by 12.9%.
Retail banking was the only sector to record declines across both regulated and non-regulated revenue generation.
Consumer finance remained the largest sector by AR participation, accounting for 16,690 representatives in March 2026. Consumer investments followed with 7,313 ARs, while general insurance and protection accounted for 6,816.
While consumer finance and investment management recorded growth in AR numbers, general insurance and protection saw participation fall by 4.8% over the year.
Islay Robinson, chief executive of Enness Global, said: “The latest data shows that consolidation within the AR market is continuing, but importantly this isn’t a story of contraction.
“While there are fewer principal firms operating today than a year ago, the revenue being generated by ARs continues to grow across both regulated and non-regulated activities.
“That suggests the market is becoming more efficient and increasingly concentrated around larger, more established principal firms with the infrastructure and expertise to support high-performing brokers.
“For experienced advisers and finance professionals, the appeal of the AR model remains clear. It provides a route to operate within a regulated framework without the administrative and compliance burden that comes with direct authorisation.
“What we’re seeing is an evolution of the model rather than a reduction in demand. The most successful AR networks are those that can combine robust regulatory oversight with commercial flexibility, allowing brokers to focus on serving clients and growing their business.”
