There has been a notable increase in acquisitions among independent financial adviser (IFA) firms, with 9% having acquired other businesses as of December 2024, Opinium’s latest IFA Barometer has revealed.
This marked a steady rise from 5% in February 2024 and 6% in September 2024, signalling a growing trend of consolidation within the sector.
In contrast, mergers have remained steady, with 5% of firms reporting mergers with other companies, showing no significant change since September 2024.
The data also highlighted a clear trend of smaller IFA firms exiting the market, with 17% of sole traders reporting that they have sold part or all of their business in the past 12 months.
Alexa Nightingale, global head of financial services research at Opinium, said: “Smaller adviser firms are clearly leaving the market, whilst the strategic shift towards acquisitions reflects the increasing focus on growth and consolidation across the sector.
“The rising number of acquisitions is a signal of confidence among larger firms to expand their reach, while smaller firms seek exits or transitions.
“These trends will shape the future landscape of the IFA sector and its ability to deliver comprehensive services to clients.”
