Introduction

During the past decade the adviser industry was shaken up and changed forever. New competitors, products, shifting business models and regulations made many advisers feel the discomfort that change can bring, while some saw the glimmer of opportunity that accompanied the shake up. Advisers have benefitted from an upsurge in technology, and a wider range of investment options to choose from. Whether the changes would have happened anyway or whether they were accelerated by regulatory change, is largely beside the point. They have changed and generally, for the better.

In this article we briefly recap developments that pushed the financial advice market towards becoming what it is today, and how the way advisers interact with the asset management industry has been transformed.

Adviser profile

The adviser profile has been through a significant transformation. In 2015, there were 10 152 registered financial advisers in South Africa; that number has grown to more than 11 890 ¹ in 2025.

The average age of a financial adviser ten years ago was 55, with women making up only 20% of the profession. A decade later, the average age and female representation remain largely unchanged. However, the Financial Planning Institute of Southern Africa (FPI) highlights encouraging progress in professionalisation. The number of Certified Financial Planners (CFP) has increased from around 4 500 in 2015 to more than 5 000 in 2025, signalling stronger standards of education in the profession ². The average age of a CFP has fallen from 45 to 40, showing that younger entrants are reshaping the certified segment.

Importantly, women now account for more than 30% of CFPs, reflecting improved gender transformation. Nonetheless, the broader industry still faces concerns around an ageing adviser force. Younger advisers, eager to establish themselves, face growing barriers to entry. Global trends suggest that setting up an independent practice is becoming more difficult, with increased regulatory requirements, rising operational costs, and the challenge of acquiring clients from scratch.

The product landscape has also evolved. In 2015, insurance and investment products were more standardised. By 2025, insurers can offer digitally enabled, personalised solutions, often bundled with reward programs that address holistic client needs. ESG investing has entered the mainstream, with investors demanding products aligned with their values. Tax-free savings accounts (introduced in 2015), ETFs, and even regulated crypto products are now widely available. The number of collective investment schemes (‘unit trusts’) has grown from around 1 200 in 2015 to nearly 1 900 in 2025(3).

Robo advisers have not taken over financial planning, but they have influenced it

Although the globally anticipated robo-advisor disruption never materialised, digital advice providers have still had a disruptive influence. Companies offering digital investment advice emerged almost two decades ago amongst predictions that they would displace human financial advice. They have not grown as expected and according to Morningstar4, only one pure robo-adviser remains that does not offer some person-to-person financial planning with its algorithmic guidance. Most offer person-to-person advice, boosting the technology and services that robo advisors pioneered.

While robo-advisers may not have displaced face-to-face advice, they got financial advisers to rethink their business models, and many traditional advisory businesses now include sophisticated online guidance. They continue to compete on costs and new features, which is good for investors/the industry, keeping advisers on their toes.

More regulation…the bar has been raised

Despite the many improvements in South Africa’s financial planning industry over the past decade, a significant debate remains on whether the financial advisory industry is overregulated. Proponents of regulation argue that it is necessary to protect consumers, while many others believe the current level of regulation is excessive, burdensome, and holds business back. Notwithstanding the ongoing debate, these regulatory changes have undeniably increased compliance costs. However, they have also delivered greater consumer protection, higher adviser qualifications, and better transparency. Although challenging, they have created opportunities for advisers to build trust and differentiate through communication and technology.

DFMs are becoming an essential business partner

In the complex investment environment, financial advisers are expected to wear many hats – portfolio manager, compliance officer and trusted adviser. Discretionary Fund Managers (DFMs) have increasingly become trusted partners, allowing advisers to remain focused on the one role that truly matters, being there for their clients.

DFMs offer advantageous services such as expert portfolio construction, operational efficiency, cost savings through economies of scale, and access to a broader range of investments for clients. This growing trend has resulted in a significant expansion of the DFM industry and increased use of these services by advisers, allowing DFMs to become mainstream.

The partnership model evolved over the years, which allowed advisers to create tailored solutions for clients, where advisers can remain involved in the investment process. This usually entails evolving and enhancing existing advisory models through careful asset allocation analysis, or by creating portfolios from scratch.

‍Succession planning is at a crossroads

With the average age of financial advisers around 55, many practices are starting to think about exit strategies. This challenge is compounded by a lack of young entrants into the industry over the past 10 years, meaning fewer advisers have structured succession plans in place. This has made succession planning a hot topic, with DFMs increasingly stepping up to assist IFAs and becoming their partner of choice.

Conclusion

Financial advisers have weathered many storms over the past decade. What does the future hold? Although it is impossible to say for certain, we know that change is the only constant, and it is getting faster. As the advice and investment landscape continues to evolve, especially with the arrival of artificial intelligence, we are certain the next decade will see even more change and the opportunities that come with it.

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