The Financial Conduct Authority (FCA) has cautioned that consolidation within the financial advice and wealth management sector could lead to “poor outcomes” for clients, employees, and the wider system if not managed effectively.
In review findings published today (31 October), the regulator assessed how advice and wealth management groups handle risks, governance, debt, and integration during and after acquisitions. The regulator said consolidation can deliver efficiencies and sustainable growth when well executed but warned that weak governance and poor oversight could expose firms and consumers to risks. "Consolidation can support efficiency and sustainable growth. But, if not effectively managed, consolidation could lead to poor outcomes for consumers, employees and the wider financial system," the watchdo...
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