Looking for a New Financial Adviser? What Consolidation and FCA Suspensions Mean for You
- Feb 12
- 4 min read
Updated: Feb 13
If you are looking for a new financial adviser, it may not be by choice.
Over the last two years, we have seen two clear trends in the financial advice profession:
Increased consolidation, where smaller firms are acquired by larger groups
Direct intervention by the Financial Conduct Authority (FCA), including suspending firms from carrying out regulated activities
Both situations can leave clients feeling unsettled. However, the most important thing to understand is this:
You have options.
Why Consolidation Is Under the FCA Spotlight
Nearly two years ago, we had a conversation with the FCA about consolidation and Consumer Duty. The direction of travel was clear.
Consolidation itself is not inherently wrong. However, it increases risk if not handled carefully.
The FCA’s central concern remains unchanged:
Clients must continue to receive the service and value they were promised, regardless of ownership changes.
In other words, simply claiming “economic equivalence” is not enough. Outcomes and expectations matter.
What Can Change After an Acquisition?
If your firm has been taken over and you are now looking for a new financial adviser, it may be because:
Your adviser has changed
Your review process feels different
Your charging structure has altered
You have been moved into centralised or in-house investment solutions
Communication feels more corporate and less personal
Sometimes, the first you hear about the takeover is through a formal letter.
While that may be legally compliant, it does not always align with what clients expected when they chose a relationship-led practice.
Ongoing Fees Without Equivalent Service
One of the FCA’s concerns relates to ongoing fees.
When firms centralise after an acquisition, service intensity can reduce. However, fees do not always follow.
Under Consumer Duty, firms must demonstrate value for money. Therefore, charging for services that are no longer delivered creates regulatory risk.
Importantly, group standardisation cannot dilute individual client outcomes.
When the FCA Suspends a Firm
There have been recent examples of firms having their permissions removed by the Financial Conduct Authority due to regulatory concerns.
Some of these concerns have included:
Treatment of customers
Appropriate financial resources
Levels of cooperation
From the outside, the firms have appeared modern and well-reviewed. Nevertheless, regulatory intervention occurred.
If you are a client in that position, you may suddenly find yourself without an adviser.
You are not required to accept a default referral.
You are free to review your options.
Looking for a New Financial Adviser - What Should You Ask?
If you are now looking for a new financial adviser, consider asking:
Has the service proposition changed since I originally joined?
Has my adviser changed without a clear explanation?
Are my ongoing fees aligned with the service I now receive?
Was I properly consulted before migration to new investment solutions?
If the answers leave you uncertain, that uncertainty matters.
Financial planning is built on trust. Therefore, clarity should never feel optional.
The Castlebay Way
At Castlebay Financial Management, we describe our approach as The Castlebay Way.
We are:
A boutique Glasgow-based firm
Three Chartered Financial Planners (two women)
A young team focused on long-term relationships
Open to both one-off and ongoing advice
Not driven by minimum fund values
We understand that people often choose smaller firms because they value:
Continuity
Personal understanding
Clear communication
Calm decision-making
Therefore, if you are looking for a new financial adviser because of consolidation or FCA intervention, we are happy to have a conversation.
No pressure. No obligation. Just clarity.
Frequently Asked Questions
Do I have to stay with a firm after it is acquired?
No. You can move to another financial adviser if the service or proposition changes.
What happens if my financial adviser is suspended by the FCA?
Client assets are typically held separately. However, you may need a new regulated adviser to continue receiving advice.
What if I am a Client of a firm whose permissions have been revoked?
If you are a client of a firm that has had its permission revoked by the FCA, it is entirely understandable if you feel uncertain.
Regulatory intervention can be unsettling. However, it is important to remember that your investments are typically held separately on regulated platforms or custodians. In most cases, the underlying assets remain ring-fenced.
The key question is not panic, it is clarity.
You are not obliged to move to any specific firm. You are also not required to make immediate decisions without understanding your options.
You may wish to:
Request a full valuation of your holdings
Understand where your assets are custodied
Clarify any ongoing charges
Seek independent advice before transferring
Taking time to assess your position is entirely reasonable.
If you would value a calm, confidential discussion about your current arrangements, we are happy to review your position and explain your options clearly.
No pressure. No assumptions. Just clarity.
Is consolidation always negative?
No. Some consolidations improve governance and systems. However, risks arise if service, value, or understanding deteriorate.
How do I know if I am receiving value for money?
Ask whether the service delivered today matches what you were promised when you became a client.
Looking for a new financial adviser?
If you would like a confidential review of your current arrangements, we are happy to help.
Useful Links
Last reviewed: February 2026
Important information
This article is for general information only and does not constitute financial advice. Financial planning and investment decisions should be based on your individual circumstances. Tax rules and legislation can change, and their impact will depend on your personal situation. If you would like advice tailored to your circumstances, please speak to a qualified financial planner.
Comments