The latest research from Enness Global has found that the number of principal firms operating within the UK’s Appointed Representative (AR) framework has declined, whilst the number of AR relationships has remained broadly stable, resulting in a higher average number of ARs per principal and signalling increased consolidation across the market.
Enness Global analysed Financial Conduct Authority data on the number of authorised principal firms and AR relationships across the UK, tracking how the structure of the AR market has evolved over time and how this is impacting opportunities for brokers looking to operate under an AR model.
The research shows that the number of principal firms has fallen by 6.4% over the last year, continuing a longer-term downward trend. However, the number of AR relationships has remained largely unchanged, declining by just 0.1% over the same period. As a result, the average number of ARs per principal has increased to 13.8, up from 12.9 the previous year.
This shift indicates that while the number of networks has reduced, those that remain are supporting a greater number of ARs, reflecting a more concentrated and potentially more competitive landscape.
Sector-level analysis also highlights a mixed picture across the AR market. While some areas have seen contraction, including general insurance and protection and wholesale financial markets, others such as consumer finance have continued to grow, suggesting that demand for AR structures remains resilient despite broader structural changes.
For brokers considering a move into the AR model, this evolving landscape presents both challenges and opportunities. Fewer principal firms means greater selectivity and higher barriers to entry, but it also places increased value on high-quality, experienced brokers who can contribute to established, well-supported networks.
Against this backdrop, Enness Global has expanded its Appointed Representative offering, designed to support experienced high-net-worth finance brokers looking to operate internationally without the burden of direct regulatory authorisation.
Operating under Enness Global’s FCA-regulated umbrella, brokers are able to deliver regulated mortgage and finance services while retaining full independence and ownership of their client relationships. The model provides access to end-to-end compliance oversight, operational infrastructure, and global market capability, allowing brokers to focus on client delivery rather than regulatory and administrative complexity.
Islay Robinson, CEO of Enness Global, commented:
“The AR market is clearly evolving. What we’re seeing is a reduction in the number of principal firms, but not a corresponding drop in demand from brokers who want to operate within an AR structure.
That tells us that the model itself remains highly relevant, but that the market is becoming more selective. Principals are taking on fewer, higher-quality brokers, and in turn, those brokers are looking for platforms that allow them to operate efficiently, particularly when working with high-net-worth and international clients.
For experienced brokers, this shift actually creates a significant opportunity. The barriers to entry may be higher, but so too is the value of being aligned with the right platform.
At Enness, we’ve built our AR model specifically around the needs of high-net-worth finance brokers. That means providing the regulatory framework, infrastructure and global reach required to operate at the top end of the market, without restricting how our brokers run their business or serve their clients.
As demand for complex, cross-border finance continues to grow, we expect to see more brokers moving towards models that give them both independence and the ability to operate on a truly global basis.”
