The UK’s fund-hosting market is becoming increasingly concentrated, with the 10 largest principal firms accounting for 62% of fund-sector appointed representatives (ARs), according to a new report from intelligence platform Hackford.
The UK Fund Host Report 2026 analysed FCA data covering 42 principal firms and 940 active appointed representative firms operating across investment management, hedge funds, venture capital, growth capital and private equity.
The findings come as HM Treasury considers reforms to the appointed representatives regime following a consultation that closed in April.
The proposed changes are expected to increase scrutiny of principal firms and their oversight of ARs.
Hackford found that while the market continues to grow, expansion is being captured unevenly.
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Over the past 12 months, 230 new active appointed representative relationships were recorded across the sector, yet fewer than half of principal firms increased their AR numbers.
Just 48% of principal firms grew their active AR count during the period, while 52% saw numbers stagnate or decline.
Langham Hall was identified as the largest principal firm in the report, hosting 113 active appointed representatives.
The research also highlighted the importance of investment management advisers within the fund-hosting market.
They account for 38% of all active in-scope AR firms, while investment management advisers and private-market-related categories combined represent 69% of the market.
Hackford founder and chief executive Dan Robinson comments: “Reg host firms are a key piece of infrastructure behind UK fund and investment firm launches.
“Our analysis shows this is definitely not a static market, but instead concentrated with fierce rivalry. New AR relationships are created, firms move, but growth is only captured by a small set of firms.”
Robinson says the findings demonstrate that competition remains intense despite the market’s concentration.
He comments: “There were 230 new active ARs in the past 12 months, but fewer than half of the principal firms grew their number of ARs. That means business is available, but it’s not flowing very evenly.”
The report suggests that any tightening of the appointed representatives regime could have significant implications for fund-hosting firms, particularly those seeking to expand their market share in an increasingly competitive environment.