There has been a “notable increase” in acquisitions among independent financial adviser (IFA) firms, a new study by Opinium has suggested, with 9% of firms having acquired other businesses as of December 2024.

This marks a steady rise from 5% in February 2024 and 6% in September 2024, signalling a growing trend of consolidation within the sector.

Opinium’s data, released in the firm’s latest IFA Barometer, showed that mergers on the other hand have remained at a steady level, after 5% of firms reported 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 had sold part or all of their business in the past 12 months.

“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,” said global head of financial services research at Opinium, Alexa Nightingale.

“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.”

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