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Simplifying investment advice rules

Journalist: Sonia Rach

ended 25. March 2026

Hi advisers!

I'm just getting in touch on the back of the FCA consultation on simplified advice.

This morning, the FCA announced it is looking to remove the annual review requirement for advisers providing ongoing services.

In a consultation paper published this morning (March 25), the regulator explained that rather than carry out reviews each year, firms providing ongoing advice would instead be expected to carry out periodic suitability assessments.

It would be up to the adviser to determine how often they carry out these reviews “based on an assessment of customer needs and circumstances, and in keeping with the consumer duty”.

Full story here: https://www.ftadviser.com/content/678c15b3-217e-47cc-9bfd-b94f7a547a71

Separately, The FCA also said there will be no changes to qualification standards or adviser charging rules as part of the proposed simplified advice regime.

This was despite the FCA being been told by firms that simplified forms of advice were only likely to be commercially viable if qualification requirements were changed.

The regulator set out how simplified forms of advice could help consumers with more straightforward needs and who do not require a full assessment of all their financial circumstances.

Firms are already able to provide more simplified forms of advice but not many offer it. 

I wanted some thoughts on the back of this? What do you think about the annual review changes? And the simplified advice rules?

Thanks

Sonia

 

 

 

 

5 responses from the Newspage community

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Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
My view is that removing the automatic annual review requirement could be sensible if it genuinely creates more flexibility and lets advisers focus on where clients actually need attention, rather than forcing a tick-box review culture. But the danger is obvious: if “periodic” is left too open, firms could end up with less clarity, not more, and Consumer Duty then becomes the catch-all standard everyone is judged against later. The FCA is proposing periodic suitability assessments set according to customer needs and circumstances, while also keeping existing qualification and adviser charging rules unchanged. On simplified advice more broadly, I support anything that helps more people get support earlier, but it has to be commercially workable and genuinely understandable. I am always an advocate for education before advice. If the system becomes simpler for firms but not clearer for consumers, then we have not really solved the problem.
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Ben Perks
Managing Director at Orchard Financial Advisers
As AI becomes ever present within Financial Advice, the FCA need to remove road blocks and give conscientious advisers the freedom and flexibility to help more people. Annual reviews, whilst necessary in some circumstances, are time consuming and unnecessary in others. The client journey, personal touches and customer outcomes are paramount and this is what will separate Advisers from computers going forward.
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David Stirling
Independent Financial Adviser at Mint Wealth
For clients this should mean a service that actually fits their life rather than the adviser's compliance calendar. Clients with simple, stable arrangements won't necessarily need a formal annual sit-down. Those with complex needs, or approaching major life events, will always still receive the attention they require.

A word of caution is that Consumer Duty hasn't gone anywhere. The obligation to justify ongoing fees through proven delivered value remains. If anything, fewer reviews means you'll need sharper evidence that clients are receiving what they're paying for. The FCA giveth, and the FCA keepeth an eye on your files.
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Graham Nicoll
Financial Planner, Chartered FCSI at NCL Wealth Partners
Annual reviews
Greater flexibility is positive, allowing firms to tailor servicing to client needs. However, it introduces ambiguity and potential inconsistency, increasing the risk of future scrutiny or remediation from the FCA. Strong segmentation and clear rational will be key.

Simplified advice
A clear opportunity to expand access, but success depends on disciplined design - well defined target markets, tightly scoped services, alignment to client need / complexity and the right team. This must be appropriately scoped advice, not diluted advice.

Qualifications
Retaining Level 4 is the right call. Level 2 lacks the technical depth required. Level 4 should be seen as the baseline, with ongoing professional development essential and I would encourage advisors to aspire to Level 6 or 7.

In summary, I see these changes as a positive direction, but greater responsibility on firms to design and evidence robust, suitable propositions.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
The FCA are in a bind. They went too far on regulating the investment process and advisers are leaving in droves. Now, they are rightly back tracking on the onerous ongoing suitability regime but they are suggesting dumbing down the adviser pool which is the wrong way to go. Educate highly, and let them run their businesses.