Financial advice firms could gain greater flexibility over how they deliver ongoing services under proposals from the Financial Conduct Authority, potentially opening the door to new service models for consumers who may currently find traditional financial advice unaffordable.
The FCA is considering replacing the existing expectation for annual suitability reviews with periodic reviews based on individual clients’ needs. It is part of a wider package of proposals designed to simplify pensions and investment advice while retaining consumer protections.
Huddersfield-based Simplybiz, which provides compliance, technology and business support to financial advisers, has highlighted the potential impact of the proposals on advice businesses. The firm is part of Fintel and operates from Fintel House in Huddersfield.
In regulatory material produced for advisers, Simplybiz identified greater flexibility for varying consumer needs, the ability to serve people who might otherwise be priced out of ongoing advice and the potential to free adviser capacity as possible benefits of moving away from a fixed annual review model.
However, the proposals could also require firms to reconsider pricing, management information, disclosure documents and how different service levels demonstrate fair value under the Consumer Duty.
Simplybiz has stressed that the changes remain proposals rather than final rules. Its guidance also notes that firms reducing the level or frequency of service may need to consider whether the price charged to the customer should also fall.
Could flexibility help close the advice gap?
The wider objective of the FCA’s work is to create a market offering a broader continuum of financial help, from guidance and targeted support through to simplified and comprehensive regulated advice.
The regulator believes simplified advice could help consumers with relatively straightforward needs access personalised recommendations without firms necessarily having to conduct the same level of assessment required for more complex circumstances.
For Yorkshire’s financial advice community, greater flexibility could create opportunities for firms to develop different service levels for different types of clients.
A consumer approaching retirement with significant pensions, investments and tax planning requirements may continue to require regular comprehensive reviews. A client with simpler financial circumstances may require less frequent intervention.
Allowing firms to differentiate more clearly between those needs could potentially enable advisers to work with a broader client base.
There is also a capacity issue facing the profession. If advisers can spend less time completing reviews that provide limited additional benefit to some clients, that capacity could potentially be redirected towards consumers who currently receive no regulated advice.
Consumer Duty remains central
Flexibility would not remove firms’ responsibilities towards customers.
The FCA has made clear that the Consumer Duty will remain an important part of the framework, meaning firms will still need to demonstrate that their services provide fair value and deliver appropriate outcomes.
The consultation closed on 22 May 2026, with the FCA expected to publish its response and final rules after reviewing industry feedback.
For Yorkshire advice businesses, the eventual outcome could influence not only compliance processes but how firms structure, price and communicate ongoing financial planning services.
The bigger question will be whether greater regulatory flexibility translates into something consumers have been promised for years: professional financial advice that is accessible to a wider section of the population.
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Sources: FCA consultation on simplifying pensions and investment advice. Simplybiz regulatory analysis.
