Half of advice firms are reviewing their client bases for potential segmentation ahead of the FCA’s Advice Guidance Boundary Review outcome, according to a new report.

Advisers sees the review as a potential opportunity for new business, according to the survey from Dynamic Planner.

Less than 1% of the advisers surveyed said they do not see an opportunity from the review.

Almost half (47%) of advisers surveyed see simplified advice as a growth opportunity, while 40% said they saw potential in targeted support.

According to the research, smaller firms are particularly interested in the potential to provide simplified advice, while larger firms are split and the most likely to be taking a wait-and-see approach.

Half of the firms who expect simplified advice or targeted support to drive growth said they are already reviewing their client bases for potential segmentation, half are looking at how they acquire clients, and half are reevaluating their resulting technology needs. Over a quarter were recruiting.

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Chris Jones, financial services director at Dynamic Planner said: “Encouragingly, findings from Advice 2025 show an advice community that is not only ready but embracing the changes that lie ahead.

“In the months and years to come, firms have an opportunity to play their part in redrawing the industry map. Customer-focused technology will be key to supporting both established models and emerging digital-first services for lower-value clients. Evolutions to the charging model could include subscription approaches or the ability to pause the ongoing service. Targeted support may enable more people to access help with their finances earlier, meaning clients come to full advice more informed and in a stronger financial position.”

The FCA has previously claimed that the review, outlined in FCA discussion paper DP23/5, will boost growth for the Financial Planning sector.

Dynamic Planner surveyed 304 financial advisers, 523 ‘decision makers’ and 50 Paraplanners, in the first quarter of this year for its Advice 2025 report.