The FCA has warned that the rapid consolidation of the wealth management and financial advice sectors could be leading to ‘poor outcomes for consumers, employees and the wider financial system.'

The value of acquisitions of financial advice firms rose considerably in 2024 due to an increase in the acquisition of firms with over £1bn in assets under advice.

The Financial Ombudsman Service (FOS) is normally seen as a bastion of stability but this view has been rocked in the past week with the sudden and unexpected departure of CEO and Chief Ombudsman Abby Thomas.

Consolidation is an interesting word and it’s probably something very much on the mind of many Financial Planners and financial advisory firms as the M&A wave continues.

The FCA said today it will undertake a review of consolidation within the financial advice market.