Bi-annual data shows steady inflow of lending firms despite overall market contraction
A total of 316 mortgage advice firms joined the Financial Conduct Authority (FCA) Register in the second half of 2025, according to the latest Landscape Report from ISS Market Intelligence (ISS MI), highlighting continued activity in the intermediary market despite a broader decline in authorised firms.
The bi-annual report examines firms and individuals on the FCA Register and Directory, tracking movements across the UK financial services sector, including mortgage and investment advice.
Overall, the number of financial services firms fell by 1.7% in the second half of 2025, to 69,385 active firms. The number of unique individual employees at these firms also declined, by 1.2% to 219,916. Most firms losing authorisation operated in credit broking.
Against this downward trend, firm entry remained robust. In total, 3,331 firms joined the FCA Register in H2 2025. Of these new entrants, 316 were mortgage advice firms and 284 were investment advice firms, a mix broadly consistent with the first half of 2025.
The data also points to notable adviser mobility within advice segments. Most individuals changing roles moved between similar types of firms, with 936 people switching from one investment advice firm to another and 576 advisers moving between mortgage advice firms.
“The financial services landscape never stops shifting,” said Benjamin Reed-Hurwitz (pictured right), head of research development for EMEA and North America at ISS Market Intelligence. “Staying on top of developments across different segments is challenging, yet it’s essential for sales and marketing teams that want to stay competitive.
“Many firms can find themselves missing out on valuable opportunities, such as new players entering the market, simply because they aren’t aware they’re out there.”
For larger advice businesses, the report records mixed patterns of adviser growth. Among the 30 biggest investment and mortgage advice firms by number of client-facing advisers, the proportion increasing adviser headcount was almost the same as those reducing it. The top five firms in the table held the same rankings as in the first half of 2025.
St. James’s Place (SJP) remained the largest by adviser numbers but reported a net loss of 43 advisers in the second half of 2025. Openwork, with a little over half as many advisers as SJP, recorded a net increase of 16 advisers.
Quilter Financial Services Limited, which expanded its adviser base by 789 in the first half of 2025, added a further 28 advisers in H2. True Potential reported a small rise in adviser numbers, while 2 Plan also made a modest increase to its adviser headcount.
“With nearly 70,000 firms on the FCA Register, organisations need a clear view of each firm’s size, footprint, and offering,” Reed-Hurwitz said. “A strong grasp of the adviser landscape is crucial for driving effective sales and marketing performance.”
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