The advice profession rarely stands still but 2025 felt like a year when the goalposts moved again. Advisers had to balance changing client expectations with regulatory pressure and significant market volatility while technology continued to evolve at pace. These pressures shaped the way advisers worked throughout the year, and several key themes emerged.
Lessons from 2025
As advisers became more familiar with its ongoing requirements, Consumer Duty delivered some clear unintended consequences. The latest FCA retail intermediary market data, which covers the first full year since the introduction of the Duty, shows that over 335,000 advised clients ceased receiving ongoing advice. This ‘offboarding’ trend tallies with our own data which showed a slight decline in client numbers across advice practices and reflects the fact that many firms have reviewed their target clients and service delivery costs to ensure they offer fair value.
The last 12 months also saw persistent market volatility as investors grappled with inflation worries, shifting interest rate expectations and ongoing geopolitical pressure.
We also saw technology become further embedded in the advice journey, helping firms streamline processes and improve data quality to support enhanced client experiences and good outcomes. Some of this has been driven by growing adoption of AI tools to take on routine tasks, but we’ve also seen a general increase in firms making use of the functionality available in their existing solutions. In our e-Adviser Index, which benchmarks advice firms’ technology adoption against their business success, we saw a significant decline in the number of firms that are just using the core intelliflo office functionality. At the same time, there was substantial increase of 34% in the number of firms using all aspects of the system.
As we head into 2026, we expect the focus to shift from coping with these challenges to using them to create better client outcomes and a stronger advice profession.
Consumer Duty continues to raise the bar on client outcomes
Now Consumer Duty is embedded in firms’ processes, we expect to see greater emphasis on measurable outcomes. The FCA data request in July shows that the regulator expects firms to capture detailed client information, including showing they understand, monitor and act on client vulnerability. Technology will play an increasingly important role in helping advisers surface insights, track behaviours and evidence compliance. Building these capabilities into everyday workflows will help keep things more manageable.
Greater need for long-term planning
After all the rumours and leaks, for advisers the immediate impact of the Autumn Budget will be relatively subdued. Although the adjustments to tax reliefs, rates and thresholds create additional complexity, most of the changes that affect clients come with long lead times, which gives advisers valuable time to explain what matters now and shape the best plan for each individual situation. Hopefully, this marks the end of the ongoing speculation, and the clearer policy pathway will give advisers a more stable planning environment in 2026.
Technology moves from optional to expected
We’re starting to see a shift from firms experimenting with AI to it becoming part of the advice process and we expect that trend to accelerate in 2026. We’ll also see the rise of technology that delivers closer integrations between systems to improve the flow of information throughout the whole advice journey. For advisers, the priority will be choosing tech that has robust data security, connects with their existing systems and saves time without creating additional complexity.
Market turbulence set to continue
With ongoing concerns about stretched valuations and geopolitical uncertainty, and with the US mid-term elections looming, it seems likely that this year’s market volatility will continue into next year. While technology can go a long way to improve efficiency, the human element of managing clients’ emotional response to their finances is where advisers come into their own. Royal London’s Meaning of Value 2025 research found that 75% of advisers believe their clients value the intangible benefits of advice, such as peace of mind, reassurance and devolving decision-making over more tangible benefits like tax optimisation. Helping clients stay the course during uncertainty will remain a central part of the adviser’s role.
Quality data remains essential
Underpinning advisers’ ability to meet their regulatory requirements, deliver long-term plans, use new technology effectively and communicate with clients at the right time is the need for quality data. Understanding the data you hold, how it flows between internal and external systems and making sure it is secure will only increase in importance. Investing in ensuring you have clean, connected and well-governed data will make your business easier to manage and scale.
Looking ahead
Despite the disruptions observed this year, there is plenty for advisers to feel positive about as we head into 2026. The regulatory picture is clearer, technology is doing more of the heavy lifting and clients are looking for the kind of reassurance only a trusted adviser can provide. With the right mix of people, processes and technology, firms can move into the year feeling ready for whatever comes their way.
