FURTHER consolidation could be set to sweep through the Australian wealth management industry, with market participants increasingly speculating on whether some of the struggling mid-tier brokers may be takeover targets. UBS yesterday vehemently denied reports in DataRoom that it was looking to hive off part or all of its wealth management arm. But senior industry sources are saying fresh consolidation is inevitable. Invast Securities chief market analyst Peter Esho said it was "a matter of when, not if" consolidation swept the mid-tier sector. Another senior market analyst, who requested anonymity, stressed the high fixed costs of running a retail brokerage. "It is clear that there are too many retail brokers in the market," the analyst said. There are a lot which aren't making any money. The wealth management market is dealing with significant structural changes, with self-managed super funds becoming increasingly favoured by high-net-worth clients, who were formerly bread-and-butter customers for brokers. A number of brokers' had expressed hope some months ago that the post-GFC market malaise had run its course. But, despite the recent rally in equities markets, trading volumes have remained low. Private client brokers have also been hit by new onerous requirements for financial advice, which have increased costs and paperwork around compliance. They have courted the government to wind back the Future of Financial Advice legislation. The brokerage industry has been struggling since ill-timed broker listings in 2007 from Wilson HTM, Austock and Bell Financial Group. Wilson HTM, 19.9 per cent-owned by Deutsche Bank, was forced to lay off 14 people last month.