Financial Services Compliance Blog - Thistle Initiatives

The FCA's Advice Market Survey: What the Findings Mean for Advice Firms

Written by Melissa Buckingham | Apr 27, 2026 11:11:26 AM

The FCA's 2025 Financial Advice Market Survey highlighted the ongoing consolidation in the advice market with stable adviser numbers, identified underserved mass-affluent clients as an opportunity, and emphasised the regulator's focus on governance and ongoing advice quality. 

The FCA has published the results of its 2025 Financial Advice Market Survey, offering a timely snapshot of how the advice market is evolving and where regulatory attention is likely to focus next. Long‑running themes around consolidation, access to advice and the quality of ongoing services remain firmly in the spotlight.  

What the Survey Data Shows

  • The market is going through a period of consolidation, with a fall in the number of authorised firms while adviser numbers remain steady at around 31,000.
  • 6,610 Appointed Representative firms are operating across 340 Principal firms.
  • Around 4.1 million people in the UK receive regulated financial advice, representing less than 6% of the population.
  • The industry holds approximately £1 trillion in assets under advice, with average portfolio sizes of circa £250,000.

The FCA has highlighted a trend we have observed for some time. The mass affluent population remains underserved. This presents a clear opportunity for firms to support clients with around £100,000 in investable assets through simplified advice solutions. Thistle believes that firms coming to market with well‑designed propositions for this demographic are likely to receive constructive support from the FCA during the authorisation process and beyond.  

Firms should also expect further engagement from the FCA where survey responses suggested weaker standards in governance, controls, the use of management information, or oversight of ongoing advice. The regulator has maintained a strong focus on the delivery of ongoing advice since its Multi-Firm Review was published in February 2025. While the Consultation Paper issued in March 2026 explored simplifying elements of the advice process, including potential flexibility around annual suitability reviews where aligned with client agreements, the direction of travel is clear. The FCA continues to prioritise Consumer Duty and expects firms to demonstrate fair value and good outcomes for retail clients.  

How Thistle Initiatives Can Help

Thistle works alongside advice firms to help them respond confidently to regulatory expectations, whether they are growing, restructuring or refining their proposition. We can support you by:

  • Conducting pre‑sale due diligence for firms looking to buy or sell
  • Supporting FCA authorisation and applications
  • Providing ongoing compliance support
  • Providing gap analysis of AR arrangements and remediation plans
  • Improving client onboarding processes
  • Supporting simplified advice and targeted support models

Meet the Expert

Melissa Buckingham, Compliance Consultant  

Melissa joined Thistle Initiatives in 2025, bringing with her a strong background in managing conflicts of interest and cross-border regulatory activity from her time at a Tier 1 bank.

With a deep understanding of both the regulatory landscape and operational pressures facing firms, Melissa adopts a thorough and detail-oriented approach to helping clients achieve and maintain compliance. She supports clients across a range of sectors, but primarily in the investments and wealth management space.