The Financial Conduct Authority (FCA) is intensifying its scrutiny of ongoing advice services within the financial sector.

In early 2024, the FCA contacted 20 of the largest advice firms to assess their ongoing advice services, aiming to ensure that clients receive consistent value and that services align with regulatory standards.

This initiative is part of a broader review focusing on the consolidation trends within the advice market. The FCA has expressed concerns that the rapid consolidation may not always serve the best interests of consumers, emphasizing that increased scale does not inherently lead to better customer outcomes. In response to these developments, the FCA has scheduled meetings with leaders of advice firms to discuss the ongoing advice review. These discussions aim to gather industry insights, address concerns, and collaboratively develop strategies to enhance the quality and delivery of ongoing advice services.

The FCA’s proactive approach underscores its commitment to maintaining high standards within the financial advice sector, ensuring that consolidation trends do not compromise service quality, and that clients continue to receive advice that is in their best interests.

As the review progresses, the FCA plans to provide further guidance and support to firms, helping them navigate the complexities of ongoing service provision and adapt to evolving regulatory expectations.

Firms are encouraged to engage openly with the FCA during this review process, as collaborative efforts will be crucial in shaping a regulatory environment that promotes both industry growth and consumer protection.