The number of advisers and wealth managers in the UK could fall by as much as 7% by 2022, wealth management group Succession Wealth has warned.
To mark its tenth anniversary, Succession Wealth carried out research which suggested that a stringent regulatory environment is forcing many financial services firms to sell up.
Over half (51%) of the advisers and wealth managers surveyed said this was the main reason for wishing to sell, followed by 36% who cited the growing pressure on costs. Just over a third (34%) said the increasing investment which is now needed to operate in such a heavily regulated infrastructure was their key reason for looking to sell their business.
At the same time, Succession Wealth expects the number of consumers seeking wealth management to rise, with a rising number of new millionaires expected over the next five years.
Mark Stokes, group communications director, Succession Wealth, said: “We recognise that operating in the wealth management sector is tougher than ever before. Our clients are at the heart of everything we do and our identity reflects our client values and strengths. As a result, we are seeing more enquiries both from potential clients and from companies looking to sell to us in order to take advantage of our economies of scale.”
Founded in 2009, Succession Wealth has assets under management of £7.75 billion.
