New figures from PIMFA, which represents around 1,000 UK wealth managers and financial advisers, showed the number of financial advice firms had fallen, but adviser numbers had increased.

The statistics, which covered the period up to December 2017, showed the number of advice firms had gone down to 13,690.

Meanwhile the number of advisers increased from 25,611 in 2016 to 26,311.

The ‘Financial Adviser Market In Numbers’ findings showed the average number of advising staff at each firm had increased to 4.77.

Other report findings showed how profits had been boosted.

Consolidated profits before tax went up from £569m to £699m and retained profits more than doubled to £230m.

(Source: PIMFA)

The research also showed that consolidated revenue also increased from £3.6bn to £4.4bn.

Gary Sunderland, head of research and indices at PIMFA, said: “Looking forward, PIMFA remains concerned about the quality and ability of clients to access advice.

“People need help and this is growing and this has been seen in recent studies on the industry as financial clarity and the comprehension of even some basic products is still very low amongst a substanial part of the population.

“The Financial Advice Market Review was of course deemed wise but still further progress has to be made to make advice clear and simply understood.”

(Source: PIMFA)

The report concluded: “Firm numbers have reduced slightly but with most adviser firms being small, therefore nimble, it means they might adapt more easily and become more effective as they progress.

“Advisers themselves, the staff, have increased though, demonstrating the ever-present need in the UK market for advice.

“When this is viewed in line with recent research publications on pensions and financial product awareness there is still a recognised gap in retail confidence when it comes to understanding finance and its benefits.

“As long as this is the case firms and advisers have the opportunity to thrive and excel in this market, notwithstanding the need to promote the sector and attract talent to work in it.”