This month has been a particularly active one for the FCA. Individually, none of the updates feel dramatic, but together they point clearly towards the direction of travel for 2025. As always, the FCA is focused on consistency, clarity, and consumer protection. For advisers and paraplanners, this is another reminder that evidence and governance matter just as much as the recommendation itself.

Below, I have summarised the key updates along with some practical reflections to help you keep your advice files strong and review ready.

 

**1. Consolidation in Advice and Wealth Management

Why the FCA is paying closer attention to scaling firms**

The FCA has released its review on consolidation in the advice and wealth management sector: https://www.fca.org.uk/news/news-stories/review-consolidation-financial-advice-and-wealth-management-sector

The trend is clear. More firms are being acquired, merged, or absorbed into larger groups. What concerns the FCA is whether those firms can maintain advice quality and control as they grow. Consumer Duty has made it obvious that process variability is no longer acceptable.

From an advice perspective, the biggest challenge sits in consistency. Different advisers across acquired firms often work with different templates, rationales, and approval checkpoints. That becomes a governance risk the moment firms start scaling.

My advice to teams is simple. Tighten your frameworks before the FCA tightens theirs. Review your templates, revisit your rationales, and ensure your records clearly evidence client objectives and suitability logic. Growth is positive, but only if the advice process grows with it.

**2. Crypto Exchange Traded Notes

 

A timely reminder on client categorisation**

The FCA has issued a fresh reminder around the rules for crypto ETNs, with a clear warning about inappropriate promotion: https://www.fca.org.uk/news/statements/information-firms-offer-crypto-exchange-traded-notes

Crypto ETNs remain high risk. The FCA has restated that firms must be strict in how they assess and evidence client categorisation.

For advisers and paraplanners, this is a good moment to revisit your segmentation notes. Many clients appear financially savvy but do not meet the bar for elective professional status. Suitability reports should clearly record the fact that these products were considered out of scope and why.

If your advisers receive crypto related questions, make sure they know the criteria for professional classification and where the lines are. Clear documentation protects both the client and the firm.

 

**3. Romance Scams

A reminder of why vulnerability evidence matters**

The FCA is urging banks to do more to prevent romance scams: https://www.fca.org.uk/news/press-releases/banks-need-to-help-break-spell-romance-scams

While this is a retail banking issue, it connects strongly to advice. Vulnerability can be subtle and situational. Clients who appear confident and independent on paper can still be at risk of manipulation.

From an advice quality perspective, this is a reminder to:

• Build vulnerability observations into annual reviews.  • Record behavioural changes in CRM notes.  • Make clients aware of your firm’s security protocols, especially around transfers.

Good vulnerability evidence is not about ticking boxes. It is about protecting clients in moments when they might not recognise a risk themselves.

 

**4. FCA Charges Three Finfluencers

What this means for advice firms who create content**

Three finfluencers have appeared in court after an FCA led crackdown on illegal promotions: https://www.fca.org.uk/news/press-releases/first-court-appearance-three-finfluencers-charged-fca-led-global-crackdown-illegal-promotions

Although most advice firms are not making TikTok content, this update is still relevant. It shows that the FCA is widening the scope of what counts as influence, and it expects anyone shaping financial decision making to follow financial promotion rules.

If your firm uses social media, webinars, newsletters, or YouTube, now is a good time to double check your content. Balance, risk warnings, and clarity on what is and is not advice need to be watertight.

For paraplanners who support content creation, remember that generic guidance must stay well away from personalised implications. A single loose phrase can change the nature of a post.

 

**5. FCA Opens Applications for Three Statutory Panels

A signal of more industry dialogue ahead**

The FCA is opening applications for three of its statutory panels: https://www.fca.org.uk/news/news-stories/fca-opens-applications-3-key-statutory-panels

This is a healthy development. It suggests the FCA wants a closer link with real adviser experience and technical insights from the industry.

If your firm has strong views on Consumer Duty, PI volatility, redress, or governance challenges, this is the moment to contribute via associations or directly through panel applications. The more practitioners involved, the more grounded the regulatory conversation becomes.

 

Final Thoughts

When you look at all of these updates together, the theme is easy to spot. The FCA wants stronger evidence, clearer logic, and better governance discipline across advice firms of all sizes. That aligns with what we see daily. Good advice is not just well written, it is well evidenced, well documented, and resilient under review.

If any of this reflects conversations you are having in your firm, we would be happy to talk it through.