Why Quality Recruiters Are Crucial to Business Growth in a Shrinking Financial Advice Market

The UK financial advice sector is facing a quiet crisis. Recent figures obtained by Begbies Traynor via a Freedom of Information request to the FCA reveal that the number of advice firms has dropped by nearly 1,000 since early 2022, representing a 15% decline in just over three years. While the number of individual advisers has remained broadly stable, the age profile of the profession is shifting in a way that should concern any business leader.

In this climate, the role of high-calibre recruitment has never been more vital.

A Sector Under Pressure

• Firm Closures and Consolidation: As of Q3 2025, there were 5,304 advice firms operating in the UK, down from 6,283 in Q1 2022. Consolidation and adviser retirements are accelerating this trend.

• Ageing Workforce: The number of advisers under 25 has dipped below 200, a 10.5% drop since 2022. Meanwhile, the only age group growing is the over-60s.

• Leadership Pipeline at Risk: Advisers aged 40–59, typically the next generation of leaders — are also in decline. As Carl Lever of Begbies Traynor notes, this poses a serious threat to the long-term health of the industry.

The figures paint a clear picture: the sector is losing not just firms, but future talent. And with fewer opportunities for younger advisers to enter the profession, the recruitment challenge is becoming more acute.

The Strategic Value of Quality Recruitment

In this environment, businesses must move beyond reactive hiring. Partnering with experienced, specialist recruiters offers a strategic advantage:

• Access to Hidden Talent: Quality recruiters know where to find skilled candidates, even in a shrinking pool.

• Succession Planning: They help firms identify and nurture mid-career professionals with leadership potential.

• Cultural Fit and Retention: The best recruiters look beyond CVs, ensuring candidates align with your firm’s ethos and long-term goals.

• Reduced Turnover: Strong hires stay longer, saving firms time, money, and disruption.

Recruitment as a Growth Strategy

Recruitment isn’t just about plugging gaps, it’s about building resilience and driving growth. In a consolidating market, firms that invest in top-tier recruitment gain:

• Operational Continuity: With the right people in place, firms can navigate change more effectively.

• Client Confidence: Experienced advisers foster trust and long-term relationships.

• Scalability: A strong team enables firms to expand services and take on new clients with confidence. 

Final Thoughts 

The UK advice sector is at a crossroads. With fewer firms, an ageing adviser base, and a dwindling pipeline of young talent, the need for strategic recruitment has never been greater. Businesses that prioritise quality hiring, and work with recruiters who truly understand the market — will be best placed to thrive in the years ahead.

In short: don’t just hire. Invest in recruitment that builds your future.