- The FCA has recently proposed changes to the pensions and investment advice rules with the aim of widening access to regulated advice
- However, a survey of advisers by AJ Bell shows adviser opinion is split, with most (57%) saying it is unlikely to help them service new clients
- Just 13% say the proposals will make it significantly easier to give advice, while 37% of advisers expect little or no practical change and 41% expect only marginal change
- The FCA’s consultation CP26/10 (Simplifying the pensions and investment advice rules) has recently closed, and a final policy statement is expected later this year
Rachel Vahey, head of public policy at AJ Bell, comments:
“Good financial advice can make a real difference to people’s lives, yet only around 9% of the population currently take regulated financial advice. So it’s encouraging to see the FCA looking at ways to make advice simpler and more accessible.
“Advisers and the industry broadly welcome these proposals. After all, any attempt to reduce unnecessary complexity, create more proportionate advice processes and give firms greater flexibility should be seen as positive. However, adviser feedback suggests there is still significant uncertainty about how much practical difference the changes will make once implemented.
“A survey of advisers using the AJ Bell platform indicates that while many firms support the direction of travel, there remains a lack of clarity around how the proposals would operate in practice and whether they would materially change the way advised businesses currently work.
“Views were relatively evenly split between those surveyed stating that they are expecting little or no practical change from the proposal (37%) and those anticipating only marginal change (41%). In contrast, just 13% said the proposals could make a material difference when it comes to making advice simpler to deliver.
“Worryingly, over half (57%) said that the proposals would not enable them to offer advice to client segments they didn’t currently work with. Although some advisers felt the plans would help them service new clients or maintain client relationships which may otherwise have ended, less than 1-in-10 (9%) said it would make a significant difference, while a further 35% felt it might have limited benefit in helping service a wider market.
“It suggests opinion is mixed and the benefits may be marginal. The proposals could help advisers working with current clients, but if the FCA were after wholesale change to the advice landscape, they may have to return to the drawing board.”
Advisers are not anticipating significant changes to advice
At the end of April 2026, AJ Bell asked 282 advisers for their opinion of the new proposals.
Overall view
Will the proposals simplify the delivery of advice?
Do you expect the proposed simplification of the advice rules to enable you to offer advice or ongoing services to client segments you do not currently support or customers you may have otherwise terminated a relationship with?
