Wealth management networks added a modest number of appointed representative (AR) firms last year, against a backdrop of continued contraction in the directly authorised (DA) advice market.
Data compiled by Network Consulting shows a net increase of 89 appointed representative firms across wealth management networks, based on analysis of changes to the FCA Register.
The quarterly review highlights a market that is still expanding at network level, but with growth concentrated among a small number of players and offset by notable declines elsewhere.
LARGEST NETWORK
As of January 2026, St. James’s Place Wealth Management remains the largest network by a considerable margin, with 2,776 appointed representative firms. It also recorded the highest number of new firms joining during 2025, with 194 additions.
However, this translated into net growth of just six firms over the year, a figure largely driven by its academy programme, which continues to bring new entrants into the network.
ValidPath Limited delivered the strongest net performance, adding 80 firms to its network, representing growth of 31.1%. Rosemount Financial Solutions and New Leaf Distribution also reported solid increases, growing by 28.6% and 10.9% respectively.
Both networks have a presence in mortgage protection as well as wealth, indicating that dual-sector activity may be supporting expansion.
At the other end of the scale, Openwork Limited recorded the largest net reduction, with a fall of 29 appointed representative firms over the year. M&G and Pi Financial also saw declines, with Pi Financial experiencing the largest percentage contraction at 34.8%, albeit from a relatively small base of eight firms.
MOVING AWAY FROM DIRECT AUTHORISATION
Alongside changes at network level, Network Consulting highlights a broader structural shift away from direct authorisation. A Freedom of Information response from the FCA shows a sharp reduction in the number of directly authorised retail advice firms between 2020 and 2025.
Firms operating across both wealth and mortgage advice fell by 24.4% over the period, a reduction of 957 businesses. Wealth-only directly authorised firms declined by 19.4%, equating to 1,054 fewer firms.
DOMINANT FORCE
Paul Day, founder and director of Network Consulting Services, said: “These figures suggest a growing preference among advisers for network affiliation, potentially driven by regulatory pressures, Consumer Duty requirements, a more arduous application process and perhaps threshold requirements.
“While networks are gaining ground, the shrinking DA segment raises questions about long-term market diversity and adviser autonomy.
“As the industry continues to adapt to regulatory change and shifting adviser preferences, the AR model appears to be consolidating its position as a dominant force in UK retail financial advice.
“Whether this trend continues will depend on how networks balance growth with quality, and how the FCA responds to the evolving landscape.”
TECHNOLOGY IS KEY
Ahmed Bawa, chief executive officer of Rosemount Financial Solutions, said: “It’s very gratifying to see our outstanding growth rate.
“Advisers are thinking carefully about their future, and looking to work with networks who not only recognise them as individuals but have the support structure in place to ensure they reach their full potential.
“Technology is a key element there – advisers want to work with networks that have invested in tools which make their lives easier, and take on some of the heavy lifting involved in being a top class adviser.
“For networks, the challenge is not just to attract new advisers, but to ensure they provide the ongoing support which allows the advice firm to thrive for the long term.”
