Why the decline in regulated advice firms is not a crisis, but a turning point for Holistic Wealth Planners
The headlines are alarming:
“Number of independent advice firms continues to fall.”
Commentators talk of consolidation, capacity issues, and the supposed “advice gap.”
But the industry’s story is only half the truth.
What’s collapsing is the old model — the structurally untrustworthy, product-intermediating advice firms.
What’s rising is the new one — Holistic Wealth Planners who operate with a clear wall between planning and product.
The data, when viewed correctly, doesn’t show a crisis.
It shows a correction.
1. This is a decline in product-distribution firms — not in genuine financial planning
The firms disappearing fastest are those whose model blends “planning” with product sales, regulated suitability reviews, and ongoing advisory fees.
Their costs are high.
Their regulatory risk is high.
Their structural incentives are conflicted.
And consumers know it.
Holistic Wealth Planning — structurally trustworthy, product-free, values-first — is not in decline.
It’s expanding precisely because people are done being sold financial products disguised as advice.
2. The so-called “advice gap” is a myth — it’s really a “product-sales gap”
The industry uses “advice gap” to imply that consumers lack planning guidance.
But the data refers overwhelmingly to a drop in:
- regulated product advice,
- fund switching,
- suitability reviews,
- ongoing-fee services, and
- retail investment intermediation.
This is not a planning gap.
This is a decline in product distribution capacity.
The public hasn’t lost access to planning — they’ve lost access to being sold things.
And that is precisely why holistic, human-centred planning models are flourishing.
3. The Statistics: What’s Really Happening Behind the Headlines
A closer look at the numbers tells the story more clearly — and more honestly.
Independent advice firms are shrinking fast
- 4,729 firms in 2022
- 4,515 in 2023
- 4,292 in 2024
→ A 9.2% drop in just two years
Restricted advisers are shrinking too
- 632 firms in 2023
- 584 firms in 2024
→ A 7.6% year-on-year decline
Total retail investment-advice firms
- 5,299 firms in 2023
- 5,016 firms in 2024
→ A 4.2% annual decline
Three-year structural decline (2022–2025)
Begbies Traynor analysis shows:
- 6,283 advisory firms (Q1 2022)
- 5,304 (Q3 2025)
→ A 15.6% contraction
But here’s the key insight the media misses:
Only one segment is growing
Firms with higher capital requirements (typically consolidators and large vertically-integrated distributors) increased by 18% since 2020.
This is not the growth of planning.
This is the growth of industrial-scale product distribution.
The small firms — the human ones — are the ones disappearing.
And that is precisely where the opportunity lies.
4. The disappearing boutique adviser is not a tragedy — it’s an opening for encore careers
Many small firm owners feel trapped:
- compliance is overwhelming
- PI insurance is unaffordable
- FCA expectations keep rising
- capital requirements pressure margins
- succession is unclear
- ongoing-fee liabilities create risk
- burnout is widespread
But there is a plot twist the industry never mentions:
You can retire from regulated advice without retiring from planning.
In fact, it’s the ideal move.
Sell your regulated firm to a consolidator.
Step outside the regulatory perimeter.
And continue the work you love — as a Holistic Wealth Planner.
You keep:
- purpose
- wisdom
- client relationships
- professional identity
- income
- autonomy
You lose:
- regulatory headaches
- PI liability
- capital adequacy burdens
- suitability-report pressure
- product-sales expectations
It is the perfect encore career — a move from structural untrustworthiness to structural trustworthiness.
A move from the old age to the Aquarian age.
A move from extraction to empowerment.
5. The Future Is Clear: The Profession Rises as the Industry Shrinks
The regulated advice industry is contracting.
The holistic planning profession is expanding.
This is not a crisis.
It is a transition — away from product-driven, conflicted models and toward purpose-driven, human-first planning.
The decline of the old system is making space for the rise of a new profession:
Holistic Wealth Planners who work with autonomy, integrity, and the full power of human capital.
Invitation
If you’re an adviser considering your next chapter — or simply sensing that the old model no longer fits who you are — the Academy of Life Planning can help you design your encore career with clarity, confidence, and integrity.
Retire from regulation.
Not from planning.
Not from purpose.
Let’s build the next generation of financial planning together.
Ready to explore a fairer, more human way to plan your life and money?
If you’ve been offloaded by your adviser, feel unsure about the value you’ve received, or simply want a planning approach built on purpose, transparency, and empowerment — we’re here to help.
The Academy of Life Planning supports individuals and families through
- self-directed planning (PML),
- guided expert support (FLC), and
- a global network of Holistic Wealth Planners who put your life before your money.
Contact the Academy of Life Planning to find out which approach is right for you.
Let’s rebuild your financial confidence — on your terms.
Academy of Life Planning 