The FCA’s advice/guidance reforms represent a landmark moment for UK financial services. 

Hailed as a ‘once-in-a-generation’ change, the new proposals seek to close the advice gap by introducing more flexibility around how firms can interact with customers. 

Specifically, the reforms introduce a new targeted support category that allows firms to offer tailored guidance to groups of customers with shared needs or characteristics, without it being classified as full regulated advice.

While the aim is to make financial advice and guidance more accessible, the changes have some interesting implications for the world of M&A, where smaller, tech-enabled advice firms are becoming top targets for equity investors and acquisitive incumbents.

Agile Advisory Firms in the Spotlight

Robo-advisors, digital guidance platforms, and hybrid service providers are well-positioned to capitalise on this sea change. 

Their ability to provide personalised support at scale, combined with mature digital infrastructures, makes them particularly attractive acquisition prospects for firms eager to reach new customer segments. 

We’re also seeing that these agile advisory firms tend to have leaner cost bases, clear data strategies, and areas in which traditional institutions have recently struggled (especially with AI integrations). 

Plus, they’re all qualities that resonate with modern M&A teams, who are prioritising digital capabilities.

In practice, acquirers will favour businesses with robust compliance cultures and the operational flexibility to integrate new service models quickly. Talent will be the key differentiator here, with leadership teams capable of driving digital transformation standing out.

This also puts leadership firmly in the hot seat. Boards and investors want to see senior teams with the experience to manage regulatory change, drive integration at pace, and build long‑term value beyond the transaction itself.

Selective Consolidation

Fresh off the strongest year in UK financial services M&A in over a decade,

we expect consolidation to continue moving in a positive direction, but in a more selective way. Acquirers will look for targets that can evidence sustainable, compliant growth under the new regime.

Through our conversations with boards, it’s clear there’s a heightened focus on strengthening governance, risk, compliance and digital‑transformation leadership to ensure operating models are fit for growth and transaction‑ready.

Executive Search Support

If this sounds familiar and you’d like to discuss the leadership expertise your organisation needs to navigate this evolving market, our executive search team would be happy to support you. Let us know what you’re looking for and we’ll get back to you as soon as possible: enquire.