The number of Registered Individuals (RIs) also fell slightly suggesting a contraction in the industry over the last six to 12 months, according to new analysis by data services provider Autus.

Despite the decline, a number of adviser firms grew their workforces and national wealth manager St James’s Place broke through the 5,000 adviser mark for the first time in the second half of 2023, a figure Autus called “a remarkable milestone.”

SJP added 77 advisers in the six months to reach a total of 5,051 with SJP’s total number of Registered Individuals at 5,894 at the end of the year.

Other firms increasing adviser numbers included 2Plan (up 146 to 593), True Potential (up 37 to 1,162), Fairstone (up 62 to 396) and Best Practice (up 48 to 362).

Meanwhile Openwork and TenetConnect both saw significant reductions in adviser numbers with Openwork down 94 to 2,932 and Tenet down 76 to 261.

Autus analysed the latest FCA figures from July to December 2023 for its report ‘The FCA Register & Directory Landscape 2023-24’. 

The report concluded: “The number of firms reducing significantly more than the number of individuals suggests a continuing movement of individuals into larger firms brought about by both acquisition and natural movement.”

The analysis showed that 6,684 firms became de-authorised over the last six months and 14,715 individuals left the register.

Some 2,792 firms joined the FCA register over the period and 9,596 people joined the register for the first time.

There were around 280,000 people on the FCA register at the end of December, with more than 90 different activities listed for them.

A total of 66,316 people are authorised to provide investment and/or mortgage advice, down slightly from 66,607 six months ago. Some 30,258 are authorised to provide investment advice only and 27,469 mortgage advice only. 

The report also showed that nearly 3,700 people moved from one firm to another over the period, down from more than 4,000 in the previous six months. It said that the drop “perhaps indicated an increased desire for more job certainty in times of wider uncertainty.”

In the mortgage sector Mortgage Advice Bureau, Quilter Mortgage Planning, Connells and Key Retirement Solutions, all saw significant reductions in the number of RIs while Stonebridge, The Right Mortgage and TMG Direct all grew substantially.