The UK’s largest wealth managers now account for 89% of discretionary wealth management clients. The figures highlight how consolidation is reshaping a sector managing almost £1tn in assets.

New data from the Financial Conduct Authority (FCA) shows that the 10 largest firms by client numbers increased their combined share from 70% in 2022/23 to 89% in 2024/25.

However, their share of discretionary assets under management fell from 62% to 59% over the same period. The FCA said this suggests much of the growth in client numbers has come from investors with smaller portfolios.

Consolidation continues to reshape the market

The figures come as wealth managers continue to pursue acquisitions and wider expansion strategies. The FCA found that 41% of firms surveyed plan to acquire another business, increase revenue or grow their client base by more than 25% over the next two years.

At the same time, 18% of firms said they were considering winding down or selling some or all of their client book.

These figures demonstrate the different directions businesses are taking. Some firms are actively looking to grow through acquisition, while others are considering their own exit or succession plans.

For financial planning business owners, this creates an increasingly active market. It also means that owners considering a future sale may have more potential buyers and routes to consider.

What is driving wealth management consolidation?

The FCA said consolidation can help firms improve efficiency and growth. Combining resources, expertise and technology can also strengthen governance and financial resilience.

However, the regulator warned that rapid growth needs to be managed carefully. Poorly managed expansion could lead to weaker client service, business continuity problems and, in some cases, disorderly failure.

For owners considering a sale, this reinforces the importance of looking beyond a buyer’s headline offer. The strength of the acquiring business and its ability to support clients after a transaction are also important considerations.

The FCA’s findings also point to the importance of technology and robust controls as firms grow. The regulator highlighted increasing use of artificial intelligence, alongside the need for stronger financial crime controls and governance.

What this means for financial planning business owners

The growing concentration of clients among the largest wealth managers shows how quickly the market is changing. Consolidation is creating larger businesses, while other firms are preparing for their own transitions.

For business owners, this makes succession planning increasingly important. An owner considering a sale needs to understand not only what their business may be worth, but also which type of buyer is the right fit.

Client continuity, cultural alignment and the buyer’s ability to support future growth can all influence the outcome. These considerations become particularly important when several potential buyers are active in the market.

A direct approach from a buyer may be the start of a conversation, but it should not be the end of the decision-making process. Understanding the wider buyer market can help owners make informed choices about who they want to take their business forward.

If you’re considering succession planning or would like to understand how buyers may view your business, click here to book a free confidential consultation and discuss your options.