The ten largest wealth administration companies accounted for 89% of all UK wealth administration shoppers in 2024/25, in response to figures printed by the FCA immediately.
The determine has jumped from 70% of shoppers in 2022/23.
The FCA’s ‘Wealth Administration Survey Report – 2026’ focuses on discretionary portfolio administration, the place companies handle nearly £1trn of belongings and assist greater than 5.5m retail shoppers.
The findings are primarily based on survey information from round 400 wealth administration companies, the regulator stated. The id of the highest 10 companies was not disclosed within the report.
The survey discovered that wealth administration companies have been assured concerning the future, with 41% of these surveyed planning to accumulate one other agency, develop income or enhance their shopper base by greater than 25% over the following two years.
Against this, 18% are contemplating winding down or promoting all or a part of their shopper books.
The FCA stated: “Consolidation can assist effectivity and progress by serving to companies pool assets, experience and expertise. It could actually additionally assist stronger governance and monetary resilience.”
Rob Hillock, head of private Monetary Planning at consultants Broadstone, stated: “The FCA’s findings present how shortly consolidation is reshaping the wealth administration market, with the biggest companies now serving a a lot larger share of discretionary shoppers.
“Higher scale can assist funding in expertise, compliance and shopper service, however consolidation should in the end translate into higher outcomes for shoppers. As companies develop by means of acquisition, sustaining service high quality will probably be important to increasing in a sustainable and efficient means.”
The report additionally concluded that the sector stays strongly relationship-led, with face-to-face contact nonetheless necessary for onboarding, supporting shoppers and shopper choices. It stated companies are making larger use of contact centres and digital channels for duties similar to investing, withdrawing funds and sending directions.
The report famous a marked enhance in the usage of AI by wealth administration companies, with 45% contemplating AI whereas 13% already use in-house or third-party AI instruments.
The report stated: “Though general use stays restricted, companies adopting or contemplating AI characterize a big share of the market. Nevertheless, additionally it is transferring shortly and adoption could now be increased, given our information solely represents submissions captured on the time of assortment. Surveying companies immediately would probably produce increased figures given momentum with AI dialogue.”
The report additionally revealed that greater than 92% of companies outsource a part of their enterprise, that means they depend on one other supplier for some providers. It’s commonest for expertise, commerce execution, assurance and oversight.
The FCA stated: “Outsourcing may give companies entry to experience, expertise and infrastructure they don’t have in-house. It could actually additionally assist companies scale and deal with core client-facing actions.”
The regulator stated it is not going to repeat the wealth administration survey within the coming 12 months however will intention to subject a shorter model in 2027 centered on portfolio administration exercise.
• FCA Wealth Administration Report 2026
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