A 4 minute watch.  

Heather Hopkins, founder of Next Wealth, briefly gives some thoughts on the shape of the adviser market according to FCA data.  

She makes the point that around half of the market is currently made-up of sole trader advisers, and that a further 35% of firms have less than 5 advisers. The difficulty for smaller firms is that the bigger guys earn more per adviser through efficiencies driven by economies of scale, and with apparent consolidation in the market the trading environment is only likely to get tougher.

Heather goes on to elaborate on where costs are weighing on small firms and the main issues on adviser minds, and finalises with her predictions on the shape of the market in 10 years time.

For more from the NextWealth Live conference, here’s the major platform CEOs debating the merits and differences in their business models, Nick Blake on the impact of robo-advisors, and our own chief, Lee Robertson, on adviser fee structures.