Last year saw an increase of 89 appointed representative (AR) firms across wealth management networks, analysis by Network Consulting has revealed.

New data compiled by Network Consulting was based on changes in the FCA Register, which the group used to pinpoint shifts in the wealth management network landscape.

The study showed that, as at January 2026, St. James’s Place (SJP) continued to have largest network footprint in terms of scale, with 2,776 AR firms.

SJP also recorded the highest number of new AR firms joining in 2025 (194), although its net growth was just six firms.

Network Consulting said this gain was largely attributed to its academy programme, which consistently feeds new entrants into the network.

By contrast, ValidPath emerged as the firm with the highest net growth terms, adding 80 firms, which equated to a 31.1 per cent increase.

Rosemount Financial Solutions and New Leaf Distribution also posted growth rates of 28.6 per cent and 10.9 per cent, respectively.

At the other end of the spectrum, Openwork recorded the steepest net decline, losing 29 AR firms over the year.

Network Consulting founder and director, Paul Day, commented: “These figures suggest a growing preference among advisers for network affiliation, potentially driven by regulatory pressures, Consumer Duty requirements, a more arduous application process and perhaps threshold requirements.”

Beyond individual network performance, a recent Freedom of Information response from the FCA, obtained by Network Consulting, revealed a sharp contraction in the directly authorised (DA) retail advice space between 2020 and 2025.

DA firms operating in both wealth and mortgage sectors declined by 24.4 per cent, equating to a loss of 957 firms.

Wealth-only DA firms fared little better, falling by 19.4 per cent, which equated to a reduction of 1,054 firms.

Day added that the shrinking DA segment “raises questions about long-term market diversity and adviser autonomy”.

“As the industry continues to adapt to regulatory change and shifting adviser preferences, the AR model appears to be consolidating its position as a dominant force in UK retail financial advice,” he added.

“Whether this trend continues will depend on how networks balance growth with quality, and how the FCA responds to the evolving landscape.”

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