Consolidation across the financial advice and wealth management sector has accelerated markedly in recent years. Private equity interest and ongoing succession challenges for retiring advisers have contributed to an increase in acquisitions, mergers and client bank sales. While consolidation can be positive in terms of bringing scale, investment and operational efficiencies, the Financial Conduct Authority( FCA) has made it clear that embarking upon a growth strategy without suitably robust compliance and governance presents real risks for firms and, critically, for the end consumer.

The FCA had highlighted in various speeches that consolidation was firmly on its radar and this was reinforced in October 2025 with the publication of the FCA’ s findings from its multi-firm review into consolidation in the advice and wealth management sector. Within the paper the FCA are clear on the significant role that consolidators( and any business purchasing another business) can play in the sector and highlights its aim to support investment and innovation in this area.

However, the FCA are also clear in their observations that if fast growth within a business is not managed effectively, it may create poor outcomes. For advice firms, and particularly around consolidation, compliance should no longer be considered a background function. It should be a treated as a central pillar of deal design, execution, integration and long-term sustainability. Paul Bruns, Compliance Director Simplybiz

February 2026 | 17