The number of retail investment advisers in the UK dipped slightly to 37,441 in 2024, according to the latest FCA Retail Mediation Activities Return report.

Overall, the number of retail investment advisers has held broadly steady since 2020 when there were 36,377.

In 2024 the number of retail investment advisers fell by about 1% to 37,441 (2023: 37,618), working in 5,016 adviser firms.

However, 2024 saw a sharper dip in the number of mortgage advisers.

The number of mortgage advisers fell 8% to 34,149 (2023: 36,836), despite previously holding steady since 2020.

The decrease in the number of financial advice firms and advisers does not appear to be as a result of profitability.

Revenues from intermediated retail investment increased 6% in 2024 to £5.7bn (2023: £5.3bn). Of this, £4.9bn was from fees and charges.

Revenue from fees and charges, and total regulated revenue, has been climbing steadily most years since 2016.

Commission continued to account for a smaller proportion of earnings, with the proportion of retail investment revenue from commissions falling to 11.9% (2023: 12.3%).

Source: FCA Retail Mediation Activities Return for 2024

For non-investment insurance distribution and mortgage broking, commission remained the primary source of revenue, accounting for 82.6% for non-investment insurance distribution (down 0.4% from 2023) and 77.4% for mortgage broking (down 0.6% from 2023).

The FCA Retail Mediation Activities Return must be completed by all firms that advise on, or arrange mortgages, insurance policies or retail investment products for consumers. The latest report reflects returns submitted to the regulator for periods ending within the 2024 calendar year.

The FCA categorises firms based on their main regulated business activity. The categories changed in 2020, making it hard to make comparisons before this date.