Consumer Duty fueling continued surge in consolidation

Regulatory pressures propel surge in consolidation in financial advice sector

Sahar Nazir
clock • 1 min read

The financial advice industry is experiencing a surge in consolidation as firms race to adapt to the Consumer Duty regulation while also facing potential risks, according to the latest report by NextWealth.

Its latest 'Consolidators and Aggregators' report found that the implementation of regulatory measures such as Consumer Duty had acted as a catalyst for consolidation within the industry, but it also posed challenges for acquiring firms. The report suggested Consumer Duty had prompted an increase in firms seeking to sell up. NextWealth founder and director Heather Hopkins said: "The impact of Consumer Duty is only beginning to be felt. "The recent news that St James's Place was setting aside £426m for potential client refunds for clients that complain about not receiving on-going a...

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