For Financial Planners and Paraplanners, by Paraplanners
Welcome to the June edition of Regulation Round-Up — your friendly and practical digest of key FCA updates and industry news that matter to your daily work. We know the regulatory landscape can shift quickly, so we’re here to help you stay informed and confident in your advice process.
💚 Responsible Investing: Still a Priority for Clients
A recent article in Professional Paraplanner highlighted findings from the FCA showing that clients continue to value responsible investment options, despite market volatility and economic pressures.
According to the FCA’s research, a significant proportion of advised clients are not only aware of responsible or sustainable investments, but many are actively interested in them. That’s an important reminder to us as paraplanners and advisers: even when regulatory focus may be shifting elsewhere, clients still care deeply about how their money is invested.
Practical tip: Make sure you’re capturing client ESG preferences properly in fact-finds and suitability reports. If your templates haven’t been reviewed since Consumer Duty came in, now’s the time.
📊 FCA Streamlines Complaints Reporting
The FCA has announced a simplification of the complaints data reporting requirements for firms. From 1 January 2026, firms will be required to submit complaints data only once a year, rather than biannually.
This is part of the regulator’s broader push to reduce red tape for smaller firms while retaining transparency and accountability. The FCA says it hopes the new regime will save time and resource for advice businesses.
Practical tip: If you’re involved in compliance support or MI reporting, take note of the transition date and ensure your internal calendars and procedures are updated in good time.
🏦 FCA Responds to Government’s Pension Investment Review
The government recently concluded a major Pension Investment Review, which aims to encourage better outcomes for savers and a more productive use of capital. The FCA has now responded, committing to support the government’s aims through a range of regulatory initiatives.
Of note to advisers and paraplanners, the FCA confirmed it will:
- Continue to assess how workplace pensions and default funds align with retirement needs
- Ensure advice processes support suitable drawdown strategies
- Promote transparency in fund disclosures
Practical tip: While many of the changes relate to workplace pensions, these developments have the potential to filter into advice standards and client expectations. Keep an eye on updates, especially if your firm supports clients with legacy schemes or SIPPs.
🤖 FCA Launches Live AI Testing Sandbox
Possibly the most forward-looking update this month: the FCA has announced the launch of a live AI testing environment, allowing firms to trial artificial intelligence tools in a safe and regulated space.
Dubbed a “digital sandbox for AI”, this initiative aims to strike the balance between innovation and consumer protection. It’s particularly relevant to compliance teams, fintech developers, and larger advice networks experimenting with machine learning tools.
Practical tip: AI might feel far removed from day-to-day paraplanning — but change is coming. Whether it’s document automation, suitability report generation, or risk profiling tools, expect AI to play a bigger role. Stay informed, and keep asking how these tools can support quality, not replace it.
🔍 Other Noteworthy Updates
- Consumer Duty enforcement is ramping up — Early supervisory actions are being taken against firms failing to demonstrate fair value or communicate clearly. Now is a good time to review your client communications and file notes.
- Advice Guidance Boundary Review — The Treasury and FCA are working on proposals to close the advice gap. While changes are not immediate, the outcomes may impact how financial planners support lower-value clients.
📖 View FCA consultations and policy statements
✍️ We Complement Can Help
At We Complement, we know the pressure of staying compliant while delivering high-quality, client-centred advice. Our paraplanning service is built for modern financial planning teams — combining technical expertise, attention to detail, and a proactive understanding of regulatory change.
Whether you’re navigating ESG reporting, updating for Consumer Duty, or building capacity to scale, we’re here to support you.
👉 Want to learn more? Visit our website or drop us a message on LinkedIn. Let’s chat about how we can help your firm thrive.
That’s it for this month’s round-up — see you in July! If you found this helpful, why not forward it to a fellow planner or paraplanner?
