Advice firms expanding operations to meet ‘ambitious’ growth plans

Financial advice firms are taking on more clients and staff, while also creating deeper relationships with existing clients, as they look to meet ‘ambitious’ growth plans, analysis from NextWealth has found.

Its Financial Advice Business Benchmarks (FABB) report noted that many advice firms were switching off ongoing fees for some clients, with their growth plans running alongside the exploration of sustainable growth and economies of scale.

The report showed that 64 per cent of advice professionals were working at firms planning to grow by taking on new clients, while 53 per cent were looking to grow assets from existing clients.

Organic growth from new or existing clients was a primary motivator of change within 47 per cent of advisers’ firms.

Nearly half (49 per cent) of advisers were serving more clients than a year ago, the highest proportion since 2021 and up from 47 per cent in 2025.

NextWealth said this expansion was taking place alongside proactive changes to client books, as firms sought to make more deliberate decisions.

These included which clients needed a full ongoing advice service and those that can be served digitally, alongside considering where digital, simplified, or targeted support could provide alternative routes.

Over the past 12 months, 44 per cent of advisers surveyed worked at firms that had switched off ongoing advice fees for clients who no longer fit the core service or pricing model.

The report also identified a growing trend of moving clients to new propositions, such as those offered by more junior advisers, a different fee model, or a hybrid offering.

Confidence among advisers had improved year-on-year, with confidence up on all nine metrics except for ‘long-term career prospects in advice’.

This improved confidence was most evident on fairness of fees, the ability to generate asset growth, and stability of the economy.

“The question running through this year’s benchmarks is what kind of growth financial advice firms are creating,” said NextWealth consulting director, Emma Napier.

“Most firms want more clients. They are adding tech and tools while also hiring people to support that growth. Financial advisers are personally serving more relationships than at any point since 2021.

“These firms are also making deliberate decisions about which clients fit their ongoing service model. They are delivering sustainable growth while meeting client needs. For some, this means turning off ongoing fees for some clients, moving others to different propositions and charging models.

“This means a firm can be expanding one area of the business and tightening in another at the same time. Those decisions increasingly come from an explicit examination of what different clients cost to serve.”

Capacity questions were underpinning growth ambitions, with 70 per cent of advisers expecting their firm’s adviser headcount to increase over the next year, while 47 per cent anticipated the number of paraplanners to rise.

While AI was found to be becoming mainstream, current use remained focused on practical tasks such as meeting notes, summaries and follow up.

However, the adviser’s role has started to include explaining to clients where AI recommendations may fall short and helping clients decide what to trust.

“The number of clients an adviser can support is a function of the whole delivery team,” Napier said.

“Paraplanners, researchers, client services and compliance account for most of the hours involved in bringing a client on and supporting them through the year.

“Firms are investing in people and technology together and AI is changing how the work gets done.”

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