Revealed: The 10 biggest UK advice networks as AR numbers drop 7.1%
The UK advice networks have seen a 7.1% reduction in Appointed Representatives (ARs) since 2021. Despite this, six out of the top 10 firms have increased their adviser numbers. The decline in ARs is partly attributed to firms merging as advisers retire. Many of these networks operate on low profit margins and diversify their revenue streams through asset management and in-house platforms. Quilter is the only top 10 network to lose advisers this year.
RELEVANT DRIVERS FOR AOLP:
Regulatory Challenges: Increased regulation is affecting traditional advice networks. AoLP, with its focus on transparency and integrity, could fill this gap.
Low Profit Margins: Traditional networks are struggling with profitability. AoLP's holistic approach could be a differentiator, offering value beyond just financial advice.
Adviser Attrition: With AR numbers dropping, there's an opportunity for AoLP to attract advisers who are disenchanted with the traditional model.
Business Model Shift: The decline in ARs is partly due to mergers and retirements. AoLP could capitalise on this by offering a more sustainable and appealing business model.
Diversification of Services: Traditional networks are diversifying into asset management to boost revenues. AoLP's broader, more holistic service could be more appealing to both advisers and clients.
Consumer Focus: With Quilter losing advisers due to a focus on revenue over service, AoLP's consumer-centric approach could be a strong selling point.
Technology: Failed tech projects have impacted some traditional networks. AoLP's tech-savvy approach could offer a more reliable and efficient alternative.