According to a Freedom of Information request sent to the Financial Conduct Authority (FCA) by Network Consulting, between 2020 and 2025, the total number of DA firms operating in mortgages only, wealth only or both areas has fallen by 17.2%, representing a net loss of 1,853 firms.
Looking at mortgage-only firms in the DA space, this has increased from 1,427 in 2020 to 1,585 in 2025. However, in 2024, the number of mortgage-only DA firms came to 1,613.
| DA total intermediary firm numbers (excluding networks) 2020-25 | ||||||
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| Wealth-only firms | 5,423 | 5,396 | 5,138 | 4,893 | 4,648 | 4,369 |
| DA firms with both permissions | 3,926 | 3,784 | 3,664 | 3,388 | 3,188 | 2,969 |
| Mortgage-only firms | 1,427 | 1,567 | 1,640 | 1,640 | 1,613 | 1,585 |
| Total DA firms | 10,776 | 10,647 | 10,442 | 9,921 | 9,449 | 8,923 |
For DA firms with both permissions, in 2020, the total number of firms came to 3,926, and in 2025, it stood at 2,969.
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On adviser numbers, mortgage advisers have gone from 5,904 in 2020 to 14,164 in 2024. The figures show that figures nearly doubled from 2020 to 2021 but have been gradually falling since 2022.
Looking at DA intermediary firm approvals, the number of mortgage and home finance approvals has been falling since 2020, going from 442 to around 132 in 2024.
Networks may present more ‘resilient route’ for advisers
Within the network space, the number of firms with mortgage permissions has stayed roughly stable, coming to 15,852 in 2022 and rising to 16,385 in 2025.
The number of advisers within networks has risen slightly, going from 9,586 in 2022 to 9,637 in 2025.
| 2022 | 2023 | 2024 | 2025 | |
| Firms | 9,586 | 9,412 | 9,418 | 9,637 |
| Advisers | 15,854 | 15,880 | 15,767 | 16,385 |
Network Consulting said the data suggests that the DA market is contracting and networks “continue to attract and retain advisers, offering a comparatively stable platform amid rising regulatory expectations”.
“As the DA market tightens, networks may present a more resilient route for growth, operational support, and compliance oversight. However, the decision to remain independent or join a network should be grounded in rigorous due diligence, robust benchmarking, and a long‑term view of business sustainability,” it noted.
Networks report growth in DA enquiries
Ahmed Bawa, CEO of Rosemount Financial Solutions (IFA) Limited, said it has “seen increased interest from DA advisers in recent months, and it’s easy to understand why”.
He explained: “The compliance requirements faced by advisers continues to increase, taking up more time the adviser could devote towards doing what they do best – helping their clients secure their long-term financial future.
“Similarly, the operational and technological support on offer by adopting the AR route opens up new opportunities for advisers, allowing them to be more proactive and strategic in building their own business. It’s a trend that I would expect to see continue in 2026 and beyond as the benefits of working within a network become even clearer. I know that the DAs who have joined Rosemount have seen their turnover and, most importantly, their profitability increase.
“For networks, the key is to make the transition from DA to AR as smooth and straightforward as possible, while ensuring the adviser receives personalised, bespoke support, which will ensure their business thrives in the future. Just as all clients are unique, so too are advice firms, and networks have a duty to deliver a tailored support package based on their individual needs and aspirations.”
Haydn Thomas, Cornerstone Finance Group’s CEO, added that for him, the choice between being a DA or an AR “comes down to what the principal(s) are really trying to achieve”.
He added: “It should be a positive step towards something, not a move away from something, if you want to feel satisfied with the decision. When a network is working well, it can ease the regulatory load, cut costs in areas such as PI, and improve efficiency.
“That can support profit, even after network fees are taken into account. Running a firm can also feel isolating, whether you are a DA or an AR principal. I see part of our network relationship managers’ role as being a coach, mentor and trusted sounding board.”
