Rising tax complexity, AI innovation and intergenerational wealth transfer are reshaping UK wealth management, according to financial data provider FE fundinfo’s Stephen Ford, adviser product strategy lead and Jodie Gallagher, head of UK Independent financial advisor product.
In a session delving into the ‘evolving wealth management landscape’ held yesterday, Stephen Ford highlighted that the looming overhaul of the UK’s tax framework formed a big theme. From 6 April 2025, the exposure of non-UK assets to UK Inheritance Tax will be determined by an individual’s tax residence rather than their domicile status—a proposed change that could significantly impact estate planning strategies.
He warned that the shift from domicile-based to residency-based taxation, coupled with the inclusion of pensions in estates and reduced business relief, will directly impact how advisers construct wealth transfer and estate plans.
“This change will disproportionately impact high-net-worth clients,” he said, noting the renewed relevance of traditional tax and wealth planning techniques. As capital allocation becomes more complex, he stressed the growing importance of planning for after-tax income, not just gross returns.
In the face of market volatility and capital allocation concerns, Ford also reminded advisers that the most profitable trading days are often clustered around the worst-performing ones. Robust portfolio construction and stress-testing through economic cycles should be the norm, highlighted Ford, also pointing to tools like Monte Carlo Simulations and behavioural risk profiling according to personality and response-to-risk patterns as valuable supports for modern advisers.
The session also explored the shifting focus in the field of retirement planning, where UK financial regulator FCA guidance continues to steer the sector away from “cookie cutter” advice. The importance of tailored retirement journeys that reflect individual age, health and goals is also emerging as a key trend. Also becoming relevant are more nuanced goal-matched withdrawal strategies—whether through fixed withdrawal amounts, variable percentages or secure vs risk-based income models.
Trends in retirement planning are evolving as retirement risks broaden, prompting a renewed interest in income stability solutions. Advisers are increasingly turning back to traditional annuities and exploring newer options like secure lifetime income pensions.
The idea behind incorporating technology hubs across systems is to “empower” advisers and paraplanners in the decision-making process. Gallagher also stressed the importance of having AI committees and policies in place to support existing regulations. “AI-driven compliance checking systems, for example, can help invest with safety,” she added.
The regulatory environment, particularly the FCA’s evolving approach, was also on the agenda, highlighted Gallagher, especially as AI and automation become more prominent in advice delivery.
The regulator’s role is becoming pivotal as technology transforms the advice landscape. A key focus is ensuring the safe and ethical use of AI in financial advice, while also encouraging more personalised, client-specific outcomes rather than generic recommendations. However, there is concern that existing FCA principles risk being too narrowly applied, potentially limiting innovation. As the pace of change accelerates, advisers and regulators alike recognise the need for regulatory frameworks to evolve—striking a balance between oversight and flexibility to support innovation without compromising consumer protection.
With digital-native Gen Zs and millennials now in the picture, one emerging challenge is the intergenerational transfer of wealth—calling on advisers to move beyond traditional planning and step into the role of coordinator across generations. Advisers need to focus on creating structured plans that align benefactors’ wishes with beneficiaries’ needs, according to Ford, using trusts, lifetime gifting and tax-efficient strategies to reduce inheritance tax and ensure smooth wealth transfer.
The session also offered a sneak peek at the upcoming Financial Adviser Survey 2025, due for release in May. One-third of advisers surveyed by FE fundinfo said they could take on 20 or more additional clients if their systems were better integrated—highlighting how simpler, more connected workflows could save time and improve the client experience.
Findings showed that 81% of advisers favour using 1–3 integrated systems over juggling numerous “best-of-breed” tools—driven by the need for consistent data and smoother workflows.
While AI adoption is still in the early stages, 27% of advisers are using tools like AI-generated meeting notes and 15% have adopted vulnerability profiling — pointing to a growing comfort with technology-enhanced advice.
78% of advisers said they plan to grow their business this year, according to the survey, but operational challenges remain. 60% cited poor system integration as a primary concern, followed by the cost of implementation at 54%. About 91% of advisers now view technology as an opportunity rather than a threat, with a preference for hybrid advice models that pair digital efficiencies with human judgement.
Top adviser priorities for 2025/26 include enhanced tax and estate planning, personalised retirement strategies and a shift toward goals-based planning underpinned by integrated tech frameworks. According to FE fundinfo’s survey, advisers are also adapting to macroeconomic uncertainty by prioritising client education, securing stable income streams and conducting thorough due diligence on portfolios and model portfolio services. On the operational side, efforts are centred around streamlining processes through AI monitoring and automated compliance processes.
