FCA multi-firm review into consolidation trends in the financial advice and wealth management sector prompts reassessment of acquisition and integration strategies

The Financial Conduct Authority (FCA) published findings from its recent multi-firm review into consolidation trends in the financial advice and wealth management sector on 31 October 2025. 

With acquisitions involving independent financial advisers and wealth managers on the rise, the FCA examined how consolidated groups are managing financial resilience, governance and client outcomes. Please see our briefing for a more detailed analysis of the review, which we have summarised below.

The review identifies both good practices and areas for improvement across six core themes:

• Group debt management – ensuring sustainable financial arrangements and limiting exposure to group credit risk.
• Group risk management – implementing effective arrangements to identify and manage risks across all entities.
• Group structure and approach to consolidation – mitigating risks through better governance and adequate capital and liquidity at the consolidated level.
• Acquisition and integration approach – prioritising rigorous due diligence and tailored integration strategies.
• Governance and resourcing – scaling systems and controls to match growth and complexity.
• Conflicts management – avoiding incentive structures that could harm clients.

While the FCA is not introducing new rules, it expects firms to reassess their risk management arrangements and group structures against these findings. Firms should take steps to address any shortcomings that could impact client outcomes or regulatory compliance. This may involve a consideration of acquisition strategies, integration processes and risk management and governance frameworks to ensure they align with the FCA’s expectations and the Consumer Duty.

As consolidation continues to reshape the sector, firms should anticipate closer regulatory scrutiny of change of control applications and group resilience. Proactive planning and robust systems will be key to delivering sustainable growth and good client outcomes in alignment with the regulator’s expectations. For further details, please see our briefing Navigating Consolidation in the Financial Advice and Wealth Management Sector: Key Insights from the FCA’s Multi-Firm Review.