SoapBox Ep.1 - Flatlining Revenue & the Quiet Culling of Low-Value Clients: FCA Advice Data on How Consumer Duty is Reshaping Advice Economics
Hard Truths for a Shifting Profession: Trends Reshaping Advice
The opening episode of the A3.0 SoapBox Series explores the forces reshaping the financial advice profession. Abraham Lucas brings together two experienced voices to examine the pressures influencing advisers, firms and clients across a market that continues to evolve.
A major theme is the rise in client disengagement. The FCA continues to roll out expectations around good service outcomes under its Consumer Duty, which has prompted many firms to review their books and assess where ongoing service can be delivered sustainably. This shift highlights the growing importance of clear segmentation, structured client journeys and operational discipline.
The conversation turns to the structure of the profession. Smaller planning firms often aim to remain accessible to a broad population. Larger firms carry legacy client books shaped by consolidation. Both situations create pressure on profitability, adviser capacity and the ability to maintain consistent service. Recent data adds important context, available through the FCA’s Retail Intermediary Market Data.
Adviser numbers remain another central point. The FCA continues to report a steady reduction in practising advisers and a fall in the number of regulated firms. Many advisers are approaching retirement, and new entrants often come through routes supported by professional bodies such as the PFS and CISI, which provide structured pathways, exams and ongoing development.
The episode also explores revenue and efficiency. Market performance has produced strong investment gains for many clients. Firm revenue growth has been more modest, and when investment performance is separated from fee income, the underlying numbers indicate significant pressure on service models, pricing and capacity. This leads into a wider discussion on the role of technology and how digital tools may support scale. Progress is visible across the profession, although the level of transformation varies from firm to firm.
Future talent appears as a positive thread. Career changers and younger advisers continue to enter financial planning with new perspectives and strong motivation. When supported well, they build strong client rapport and help firms bridge generational shifts. A consistent flow of talent remains essential for sustainable growth.
The discussion also highlights the importance of public guidance resources for people who do not currently have advice relationships. Organisations such as MoneyHelper provide impartial financial information that sits alongside the regulated advice landscape and helps individuals stay informed.
Across the episode, one message stands out. The profession is shifting at a structural level. Client expectations are evolving, regulation is shaping how firms operate, and firms now face a clear need for sharper models, clear thinking and strong delivery. Organisations that understand these pressures and respond with intention are likely to be better placed for long term success.
Episode One of the A3.0 SoapBox Series sets the tone for what follows: open discussion, practical insight and a candid look at the future of financial advice.
