The Financial Conduct Authority (FCA) has outlined a more “purposeful, predictable and proportionate” supervisory approach for the financial advice sector, while setting out priorities ranging from investment culture to financial crime controls.
The FCA’s senior officials, Kate Tuckley, head of department, consumer investments and Sara Woodroffe, head of department, consumer investments, shared that the FCA’s new supervisory approach would centre on the “three Ps” — predictability, purpose and proportionality — at the Morningstar Investment Conference UK 2026 held yesterday.
The regulator identified four priorities for the consumer investments sector: building a stronger investment culture, strengthening trust, securing good customer outcomes and tackling financial crime.
Woodroffe said that predictability meant firms would hear from the regulator “in a much clearer, more regular way”, including through annual market reports replacing what the FCA described as sporadic communications.
Tuckley said the FCA wanted consumers to feel “more confident to invest”, supported by clearer communication, reduced jargon and better financial education. She referenced the introduction of a new investment initiative backed by government and regulators, aimed at encouraging more consumers to begin investing.
They also said firms needed “good systems and controls”, particularly as businesses consolidate and adopt technologies such as AI. Woodroffe and Tuckley said that the FCA continued to receive feedback on transfer delays and bereavement processes, adding that the regulator was working with industry to improve transfer times, particularly for simpler products such as ISAs and GIAs.
The UK regulator also announced a forthcoming multi-firm review into bereavement processes, which Woodroffe described as “an important test of firms’ ability to deal with those processes”.
On financial crime, the sector remained exposed to “bad actors” capable of undermining trust and causing “a huge amount of harm”.
Tuckley and Woodroffe highlighted recent FCA work with Ofcom (regulator and competition authority for the UK communications industries) and international regulators targeting social media scams and misleading online promotions.
“We secured seven convictions earlier this year,” they said, referring to enforcement action involving influencers accused of posting inaccurate or misleading financial information online. However, they added that the FCA recognised there were “legitimate influencers out there” and intended to issue guidance supporting compliant communications.
The FCA’s recent adviser survey showed the number of advice firms had fallen by around 15% since 2021 because of consolidation, but adviser numbers had remained “stable” at around 31,000.
The survey also revealed uneven adoption of AI across firms. Around 49% of small firms reported plans to deploy AI in advice processes, compared with 81% of medium-sized firms and 95% of large firms.
On retirement income, nearly 90% of firms were making or considering changes following FCA work in the area. However, she noted weaknesses remained, including firms failing to review initial advice or replacement business.
The FCA additionally highlighted gender representation in financial advice. According to survey findings, women account for 66% of support roles and 48% of paraplanners, but only 18% of advisers. Among advisers over 50, the proportion falls to 13%.
Women were involved in 60% of advised client relationships, pointing to “a clear difference between who the sector serves and who it is made up of”, said the FCA officials.
The regulator’s message highlighted continuing efforts to reduce regulatory burden through data reforms, including reducing reporting requirements and cutting the number of data points collected by 55%.
