The movement of appointed representative (AR) firms among networks during the first quarter (Q1) of 2025 reflects the sector’s continued evolution and dynamism.
Building on the momentum of 2024, Q1’s data offers valuable insights into gross and net year-to-date (YTD) changes, highlighting the most significant winners and losers while also uncovering emerging trends.
Net changes in firms
Q1 2025 saw a net increase of 140 new AR firms across networks with more than 20 AR firms, underscoring the positive trajectory of the AR model within the mortgage sector.
The movement of AR firms provides valuable insights into the mortgage intermediary sector’s transformation
This growth illustrates the resilience and adaptability of some networks in responding to evolving market demands. The emergence of new networks further reinforces this upward sentiment, signalling robust confidence in the AR framework.
However, the growth in AR firm numbers has not translated into a corresponding rise in adviser numbers. Instead, the overall count of mortgage-permitted advisers has remained relatively steady, with a modest decline of 13 advisers during the same period, for the networks that appear in the table.
This divergence potentially suggests a shift in industry dynamics, where more advisers are choosing to leave a larger practice to establish their own firm. This trend aligns with many of our recent enquiries expressing advisers’ interest in starting a business.
Additionally, data from Network Consulting, drawn from a Freedom of Information request to the Financial Conduct Authority, reveals a substantial decline in directly authorised (DA) firm approvals over the past five years. Together, these developments strongly indicate a growing preference for the AR model as the industry adapts to changing adviser needs.
The ability to attract and retain AR firms will depend on a network’s commitment to innovation, compliance and adaptability
Added to which, many believe that the process to become DA, along with the strains of both Consumer Duty and FCA reporting, has added to the decline in DA firm approvals. Given that the regulator recently announced a consultation on reducing the reporting requirements (closes 14 May), this may have an impact on firms’ preferences on which route to take.
In percentage terms, Cornerstone Network has emerged as the top-performing network in Q1, achieving an impressive 16% net increase in AR firms YTD. Rosemount Financial Solutions (IFA) closely follows, with a notable net increase of 13.3%.
Conversely, Dragon Brokers recorded a net decrease of -10.7% in Q1, albeit this represents a differential of only six firms.
Meanwhile, Openwork and Primis have continued their longstanding trend of declining AR numbers. Openwork has suffered consistent firm losses each quarter for the past three years, amounting to a total net loss of 107 firms since January 2023. Primis has experienced only one quarter with a net gain of AR firms during the same period, attributed to the acquisition of TenetLime in Q1 2024.
Q1 2025 saw a net increase of 140 new AR firms across networks with more than 20 AR firms
This presents a noteworthy point regarding acquisition on a bigger scale. Taking on a large number of multi-adviser firms in one go will require an infrastructure that’s able to continue an acceptable level of service and regulatory oversight.
When 2Plan took on the firms from the other Tenet Group networks last year, it agreed with the FCA that it would suspend recruitment of multi-adviser firms until its infrastructure had caught up. At the time of writing this suspension is still in place, but it is believed that it will be lifted imminently.
Implications
The contrasting trends of growing AR firm numbers and stable adviser counts mark a critical juncture for adviser support services.
Networks must proactively address these changes by offering tailored support and fostering environments conducive to today’s marketing trends and entrepreneurial growth. The ability to attract and retain AR firms will depend on a network’s commitment to innovation, compliance and adaptability.
The growth in AR firm numbers has not translated into a corresponding rise in adviser numbers
As we progress through 2025, the movement of AR firms provides valuable insights into the mortgage intermediary sector’s transformation.
Networks that can focus on client outcomes, anticipate market shifts and strategically adapt to emerging trends are well positioned to thrive in this competitive and dynamic environment.
| Network | Total number of AR firms | Number of AR firms that joined YTD in 2025 | Number of AR firms that left YTD in 2025 | Net change in number of AR firms YTD 2025 | Net change in percentage terms | Net change in AR firms in Q1 2025 | Number of advisers with mortgage permissions as per FCA register (CPD20 & CPD21) | Average number of mortgage advisers per AR firm |
| St. James’s Place Wealth Management Plc | 2814 | 104 | 51 | 53 | 1.9% | 53 | 1400 | 0.5 |
| Primis*† | 1112 | 13 | 25 | -12 | -1.1% | -12 | 2281 | 2.1 |
| Quilter * | 690 | 15 | 16 | -1 | -0.1% | -1 | 1348 | 2.0 |
| Stonebridge Mortgage Solutions Ltd† | 674 | 28 | 11 | 17 | 2.5% | 17 | 1230 | 1.8 |
| Openwork Limited | 592 | 7 | 13 | -6 | -1.0% | -6 | 2392 | 4.0 |
| HL Partnership Limited† | 515 | 30 | 14 | 16 | 3.1% | 16 | 926 | 1.8 |
| The Right Mortgage Limited† | 419 | 27 | 12 | 15 | 3.6% | 15 | 700 | 1.7 |
| 2Plan Wealth Management | 273 | 2 | 2 | 0 | 0.0% | 0 | 392 | 1.4 |
| The On-Line Partnership Limited* | 241 | 9 | 13 | -4 | -1.7% | -4 | 299 | 1.2 |
| Sesame Limited† | 237 | 0 | 3 | -3 | -1.3% | -3 | 561 | 2.4 |
| Connect IFA Ltd† | 232 | 29 | 12 | 17 | 7.3% | 17 | 237 | 1.0 |
| Mortgage Advice Bureau Limited | 187 | 1 | 2 | -1 | -0.5% | -1 | 1789 | 9.6 |
| New Leaf Distribution Limited | 177 | 6 | 1 | 5 | 2.8% | 5 | 273 | 1.5 |
| ValidPath Limited | 175 | 23 | 3 | 20 | 11.4% | 20 | 64 | 0.4 |
| Sense Network* | 172 | 3 | 3 | 0 | 0.0% | 0 | 175 | 1.0 |
| Mortgage Intelligence Ltd† | 139 | 3 | 5 | -2 | -1.4% | -2 | 338 | 2.4 |
| Best Practice IFA Group Limited | 127 | 3 | 3 | 0 | 0.0% | 0 | 95 | 0.7 |
| White Rose Finance Group Limited†** | 112 | 7 | 8 | -1 | -0.9% | -1 | 30 | 0.3 |
| TMG Direct Limited† | 100 | 9 | 2 | 7 | 7.0% | 7 | 286 | 2.9 |
| Cornerstone Financial† | 81 | 16 | 3 | 13 | 16.0% | 13 | 192 | 2.4 |
| Julian Harris* | 75 | 1 | 1 | 0 | 0.0% | 0 | 96 | 1.3 |
| Rosemount Financial Solutions (IFA) | 75 | 10 | 0 | 10 | 13.3% | 10 | 107 | 1.4 |
| Beneficial limited† | 73 | 4 | 3 | 1 | 1.4% | 1 | 76 | 1.0 |
| Dragon Brokers Limited† | 56 | 8 | 14 | -6 | -10.7% | -6 | 65 | 1.2 |
| Corbel Partners | 56 | 3 | 1 | 2 | 3.6% | 2 | 60 | 1.1 |
| Richdale Brokers | 40 | 3 | 1 | 2 | 5.0% | 2 | 27 | 0.7 |
| John Charcol Limited† | 33 | 2 | 1 | 1 | 3.0% | 1 | 120 | 3.6 |
| Pi Financial Ltd | 28 | 1 | 2 | -1 | -3.6% | -1 | 71 | 2.5 |
| JLM Mortgage Network† | 27 | 0 | 1 | -1 | -3.7% | -1 | 88 | 3.3 |
| Ingard Financial† | 24 | 2 | 3 | -1 | -4.2% | -1 | 36 | 1.5 |
| TOTALS & AVERAGES | 9556 | 369 | 229 | 140 | 140 | 15754 | 2.0 | |
* denotes multipal principals (networks) trading under one network brand
† denotes networks holding only mortgage and protection permissions
** specialise in consumer credit
Source: FCA register
Figures correct at 10th April 2025
Paul Day is founder and director of Network Consulting
This article featured in the May 2025 edition of Mortgage Strategy.
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