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Number of advisers cancelling authorisation grows - comment request

Journalist: Amy Austin, FT Adviser

ended 19. November 2025

Data obtained from the FCA via a Freedom of Information request, submitted by FT Adviser, found since 2020 a total of almost 1,500 firms have cancelled authorisations.

In 2020, 272 firms had decided to cancel their authorisations but in 2024 this had grown to 376 firms - an increase of 38 per cent.

Data here: 

Year     Cancelled firms

2020         272

2021          260

2022          192

2023          378

2024         376

Total         1,478

Why are more advisers cancelling their authorisations in recent years?

Is this something the profession should be worried about?

Is this trend likely to continue?

Any comments on this data would be really appreciated for a news piece. As this data is exclusive it would be appreciated if it was not shared any wider please until it is published by FT Adviser.

5 responses from the Newspage community

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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
With all the talk of AI stealing jobs, financial services is not immune. More and more people are asking ChatGPT for advice, and getting better answers than some advisers can give. This, coupled with the onerous regime the FCA has in place for directly authorised firms makes it unviable for even the most motivated individuals.
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Michelle Lawson
Director at Lawson Financial
These numbers are sad and worrying to see. The financial services industry has become so complicated, long drawn out and a real slog at times and it really becomes a survival of the fittest. Many have been in the industry for a long time and then end up retiring meaning we lose much needed experience at the top. Some have possibly started and quit too soon. The need for advice has never been greater but if numbers are diminishing this will be hard to nurture and bring through new talent.
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Eamonn Prendergast
Chartered Financial Adviser at Palantir Financial Planning Ltd
This data highlights a profession under pressure not from a lack of clients, but from a lack of capacity.” “Many advisers leaving the industry are older, and the combination of Consumer Duty, rising compliance costs, and rapid tech transformation is proving too much for some to adapt to. There’s no shortage of people who need advice if anything, demand is rising but the supply of advisers is shrinking. The real worry isn’t just the number of firms leaving; it’s who’s not replacing them. You only have to attend an industry conference to see the lack of women and young people coming through the ranks. If this trend continues, access to advice risks becoming the preserve of the wealthy, which would be a huge loss for ordinary savers.”
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Mike Staton
Director at Staton Mortgages
These figures come as no surprise to me, the Covid Era saw a massive influx in people that thought being a Mortgage Broker was an easy street to make a quick quid, I think it is no coincidence that as the industry is becoming a harder, more demanding place to work, these advisors are coming to the realisation that there is more to being a mortgage advisor than throwing enough muck at a wall to see if it sticks. We are seeing a purge that is needed in the industry. Whilst others may blame AI for these figures, the answer is much simpler
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Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
This is a trend of advisers retiring and selling out to consolidators. There are so many myths and scare stories of direct authorisation combined with the hard graft to source enough clients to cover your costs that it's no surprise we're seeing a dwindling of firm numbers. It's safer to have a salary and let someone else take the risk. There are efforts, like the Verve Foundation to help new businesses and i'm very grateful to Hayley Rabbetts for signing me up to the incubator programme. It's been a great support as I look to complete my second year as a directly authorised firm.