At Manchester, Nick Hulme, FCA’s Head of Department for Advisers, Wealth & Pensions Supervision, highlighted that the regulator sees the survey as serving a dual purpose: supporting the regulator’s supervision and policy work, while also enabling firms themselves to benchmark their business models, advice processes and outcomes against peers of a similar size and profile.
KEY FCA TAKEAWAYS
- Market structure and consolidation - Adviser numbers have remained broadly stable at around 31,000, while the number of authorised advice firms has fallen by around 15% since 2021, reflecting consolidation rather than a reduction in advice capacity.
- Client demand and advice focus - Retirement income advice remains a major area of focus, with almost nine in ten firms having already made, or currently making, changes to their approach - reflecting both regulatory scrutiny and the complexity facing clients moving into decumulation.
- Technology and innovation - Under half of small firms are using or exploring AI tools, compared with more than four‑fifths of medium firms and over nine‑tenths of large firms. This reinforces the FCA’s increasingly proportionate supervisory approach, recognising different operating models across the market.
- Vulnerable client support - Over 92% of advice firms report having vulnerable clients, and more than half have made service adjustments where vulnerability characteristics are identified.
- Workforce and gender balance - Women account for just 18% of financial advisers, and more than half of multi-adviser firms have no female advisers, despite women representing a much larger share of advised clients. This gap continues to highlight challenges around representation and retention within the profession, as well as the importance of a sector that reflects the clients it serves.
FURTHER EVIDENCE OF A PROPORTIONATE APPROACH
The proposal within CP26/10 that firms would no longer be required to assess suitability annually as a rule has caused some controversy within the sector, although a show of hands at our Manchester conference highlighted that most firms viewed this as a positive move.
At PA360, I reframed this proposal as a 'watershed moment' for firms to be empowered to do what is right for each individual client, based on their needs. You can read more in this Professional Adviser article.
SIGN-UP TO OUR BEREAVEMENT STANDARD
Our new, voluntary Bereavement Standard for Intermediaries sets out what good practice looks like when supporting clients and families following a bereavement.
The Standard aligns with FCA expectations on vulnerability and Consumer Duty, and focuses on delivering sensitive, consistent and compassionate support at a critical moment.
Firms receive a digital badge to demonstrate their commitment, as well as receive a discount on specialist CPD training.
Find out more here.
WEBINAR - APPROACHING SOCIAL MEDIA WITH CONFIDENCE
Join us on 5th May for our latest Consumer Duty Practitioners’ Forum webinar, exploring how both AR and DA firms can use social media confidently, compliantly and effectively.
Join Michael Lawrence, and his expert guests Claire Mellon (Chief Client Officer, Cohesion Financial Solutions) and Chris Miles (Managing Director, SM Advice) as they demystify the rules and provide practical, realistic frameworks that advisers can apply, without the need for dedicated marketing support.
Book your place here.
We’re looking forward to visiting the South West for the next date in our ‘Raising Standards Together’ tour, more details below, and we’d urge you to take advantage of this unique opportunity to interact directly with your regulator.
Very best wishes,
Keith Richards, CEO, Consumer Duty Alliance
