Revenue earned from retail investment intermediation in 2022 increased by 3% from the year before, Financial Conduct Authority (FCA) data has revealed.
Total regulated revenue in 2022 increased to £5.5bn ($6.9bn, €6.3bn) from £5.37bn in 2021, as well as an increase in revenue from fees and charges to £4.7bn.
However, revenue accounted for by commission fell from 14% in 2021 to 13% in 2022 and still remains lower than the peak in 2016, which was £843m.
The number of retail investment advisers are also on the rise, as the data showed that the number of posts across all firms rose to 37,381 in 2022, an increase of 707 from 2021.
Of all firms providing advice, 86% of firms provided independent advice last year ,with 12% providing restricted advice.
The FCA data also revealed that financial advice firms paid £166m in professional indemnity (PI) premiums to insurers in 2022, which accounted for 2.7% of regulated revenue.
Smaller firms earning less than £100,000 of revenue took the biggest hit with PII premiums paid making up 6.2% of their revenue.