Demand for clients with lower asset values increased just 3% when comparing the first quarter of 2023 with the same period in 2024.

The growing disparity suggests financial advisers are “focusing on maximising their returns” at the expense of bridging the advice gap, according to Unbiased.

Karen Barrett, CEO and founder of Unbiased, said: "Our data uncovers a troubling trend: financial advisers are prioritising business growth as they take on higher value clients. This contributes to the advice gap, which appears to be growing wider despite the FCA and industry leaders repeatedly flagging the opportunity.

“Notably, some restricted financial advisers are starting to support clients with lower asset values, potentially helping to narrow this gap in the future. Nevertheless, the expanding advice gap remains a significant concern that demands collective action.”

A recent report form Canada Life found that nearly one in four (23%) of Britons would never seek financial advice, even if it was free.

The FCA is planning to open the door to millions of consumers receiving ‘financial guidance’ on their personal finances which stops short of regulated financial advice, in order to help narrow the advice gap.

The FCA has said its proposals to relax the strict boundary between advice and guidance would provide "greater support" for people's financial decisions.

The proposals, floated in the past, have raised concerned among some advisers that ‘watered down’ financial advice would create more problems than it solves.

The FCA said it was acting to help bridge the advice gap. Its Financial Lives survey found that only 8% of UK consumers received full financial advice in 2022. It said many people may struggle to make the right choice on saving and investing without help.