From a regulatory perspective, 2025 has felt less like a steady drip of change and more like a sustained wave. In addition to thirty-nine Consultancy Papers over the past twelve months, firms also had to contend with an industry first- a Section165 mandatory information request, issued to the whole investment advice sector in July. Taken together, these developments signalled not only an exceptionally busy year, but also a regulator that is reshaping how it supervises firms and its strategy around how it wants the advice market to grow.

Paul Bruns Compliance Director Simplybiz

It feels as though 2025 so far has been defined by two parallel tracks.

Sandy McGregor Director of Policy Simplybiz On one side sits the strategy for growth. This includes proposals to use Consumer Duty to reduce overprescription in the rules, and to simplify elements of SMCR. The direction of travel continues towards making it easier for firms to operate, reducing unnecessary complexity, and- the sector’ s Holy Grail- helping to close the advice gap through its Advice Guidance Boundary work, including initiatives such as Targeted Support.

On the other track are the myriad issues occupying firms day-to-day. Ongoing work on Consumer Duty- particularly around ongoing services, fair value, and evidencing good client outcomes- has continued to demand time, resource, and robust data. At the same time, firms have had to complete and submit a data-gathering exercise through the FCA’ s survey.

10 | The Adviser Online