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Financial Services newsletter Friday 28th November 2025

Financial Services NewsFinancial advisers have delivered a mixed verdict on the Budget, warning that tighter pension investment rules and higher dividend taxes could discourage enterprise and investment. Dominic Tayler of Oakglen Wealth argued that the measures risk restricting growth, weakening economic confidence and ultimately reducing Treasury receipts.The Financial Ombudsman Service is proposing its first fee increases in three years, with individual case charges set to rise by 4.6% to £680 and the compulsory levy by 10% to £86m in 2026/27. The service expects to resolve 245,000 complaints during the year, including 60,000 cases concerning motor finance commission.Confidence in the UK among wealthy investors has deteriorated sharply, according to research from Wealth Club. Almost half of respondents said they had lost faith in the country as an investment destination, while only 11% viewed it as attractive for starting a business. Taxation and a perceived lack of support for wealth creation were among the principal concerns.The State Pension will increase by 4.8% in April 2026 under the Triple Lock. The full new State Pension will rise to more than £240 per week, providing recipients with an additional £550-plus annually—around £120 more than an inflation-linked increase alone. The full basic State Pension will grow by approximately £440 a year.The FCA is consulting on plans to simplify regulatory reporting and save firms more than £100m annually. Its proposals include reducing the cost of MiFID transaction reporting from £493m to £385m and removing or scaling back returns for 95% of regulated businesses, as part of a wider effort to reduce administration for 36,000 firms.UK financial advisers are adopting a more cautious investment stance amid concerns about geopolitics, artificial intelligence and future equity returns. Schroders’ research found that 36% are increasing exposure to alternative assets and 32% to emerging markets, while 68% identified technological change as a key consideration.Ongoing financial advice is helping consumers remain focused on their long-term objectives, according to research from St James’s Place. Among advised respondents, 95% said the support kept them on track and 85% were meeting or exceeding their targets. They were also more than twice as likely to have a structured plan and considerably more likely to be saving for retirement.Tatton Asset Management increased first-half operating profit by 20.9% to £13.1m, as revenue climbed 18.6% to £25.7m. Assets under management and influence grew by almost 30% to £25.85bn at the end of September and reached £27.13bn in November. The group also expanded its network to 1,170 adviser firms and 167,150 client accounts.Personal Finance Society president Carla Brown has called for greater female representation in financial planning, where women account for only 18% of advisers. Speaking to 1,800 members at the PFS National Conference, she urged the profession to promote career opportunities more widely and encouraged established female planners to become visible role models.More than one in five UK paraplanners are already using artificial intelligence to help manage growing workloads, according to Scottish Widows. While 82% expect the technology to improve efficiency over the next five years, only 12% of firms currently have a formal AI policy, with a further 35% developing one.Aviva generated £8.3bn of wealth net inflows during the first nine months of the year, an 8% increase driven by its platform and workplace businesses. Wealth assets under management rose 7% from June to £224bn, keeping the insurer on course for its target of £280m in divisional operating profit by 2027.Financial planners are building substantial audiences on YouTube as demand grows for accessible, trustworthy financial education. Pete Matthew’s Meaningful Money channel has generated more than 10m views over 15 years, while tougher action against fraudulent investment content is creating more space for regulated professionals.Seven of the 10 UK areas with the highest proportion of people working beyond 65 are in London, according to Bower Home Finance. Newham recorded the highest rate, at 31% of residents aged over 65, compared with just 4% in Newcastle upon Tyne.M&G recorded £1.8bn of net inflows during the third quarter, reversing the outflows reported in 2024 and taking its year-to-date total to £3.9bn. Assets under management and administration increased by 3% to £365bn, including £176bn managed for external clients.Evelyn Partners’ assets under management reached a record £67bn in the third quarter, rising 3.8% during the period and 7.3% year on year. Gross inflows increased to £2.1bn, while net inflows grew by 20.5% annually to £269m. The firm is also undertaking a major systems integration programme to strengthen its use of artificial intelligence.Biggest challenges facing Financial Advisers - Financial advisers continue to face challenging economic pressures, and growing regulatory changes, as well as rising client expectations. Many are also contending with market uncertainty and the potential risks of AI in financial advising. Despite these challenges, many opportunities exist – IDEX Consulting shares what financial advisers should know and the action they should take now. (IDEX Consulting news, 'Biggest challenges facing Financial Advisers')Counter-offers - the real truth behind the proposal - Before accepting a counter-offer, professionals should evaluate their reasons for resigning, consider the long-term impact on job satisfaction, compare career development opportunities, and seek impartial advice, as research shows most who accept counter-offers leave within a year due to unresolved issues. (IDEX Consulting news, 'Counter-offers - the real truth behind the proposal')How to create an inclusive hybrid and remote culture - Inclusive hybrid cultures require more than just engagement strategic; businesses must actively embed inclusive practices. Hybrid work presents challenges, particularly for marginalised groups, due to biases in virtual settings and accessibility issues. Key strategies include understanding diverse employee experiences, fostering open feedback, and providing tailored training for virtual inclusion. Proactive measures will ensure a more equitable and connected workforce. (IDEX Consulting news, 'How to create an inclusive hybrid and remote culture')Financial Services business valuation calculator - Are you planning your 2026 business strategy but need reliable insights into your business performance? Our free valuation calculator for Financial Services firms provides an instant valuation based on your company's profile, recurring income, and profitability, giving you the essential data to make informed decisions. (IDEX Consulting news, 'Financial services business valuation calculator')Mergers and AcquisitionsWH Ireland shareholders have backed an all-share merger with Team that values the wealth manager at £12.7m. Subject to regulatory and court approval, WH Ireland investors will own 43% of the combined group, which will oversee £2.1bn and have a market value of approximately £30.3m.Craven Street Wealth has acquired Pharon Independent Financial Advisers, creating a combined business that advises more than 5,800 clients on £2.9bn of assets. The deal is Craven Street’s sixth acquisition since 2019 and follows its move into private equity-backed Quanta Group earlier this year.The Penny Group has secured a majority interest in Berkshire-based Harridge Financial Services, adding £360m in assets under management. The combined operation will oversee more than £2bn through 48 advisers, with Harridge adopting The Penny Group Harridge name ahead of full integration over three years.Titan Wealth has agreed to acquire Thomas Carroll IFA, subject to regulatory clearance. The South Wales firm serves 450 clients and manages more than £160m. Its employees will move into Titan’s Cardiff-based Nugenis hub, strengthening the group’s regional presence and range of client services.Howden is purchasing Evelyn Partners Financial Services, the group’s employee benefits division, for an undisclosed amount. Subject to approval, its 38 employees will transfer to Howden in early 2026, expanding the insurance broker’s consultancy capability across workplace healthcare, group risk and employee benefits.Twelve Wealth Management has acquired fellow St James’s Place partner Smith Hobbs Wealth Management in an undisclosed transaction. Managing director Matt Smith will join the London-based firm, which operates with 13 advisers and provides financial planning and mortgage services.Azets Wealth Management has expanded in the South West by purchasing Cornwall-based Evans Falco. Led by chartered financial planners Treve Evans and Rosie Falco, the firm specialises in complex tax, financial and later-life planning for high-net-worth clients. Its team will move into Azets’ Plymouth and Truro offices.Moore Kingston Smith has strengthened its financial planning business through the acquisition of CMIS Independent Financial Advisors and Augustine Financial Planning. Both firms hold Corporate Chartered status, while Augustine also brings family office expertise that Moore Kingston Smith intends to develop further.Plannex has acquired financial education provider About Financial and launched a new training division. Plannex Training will provide practical learning resources for professionals taking CII qualifications, with About Financial director Jon Dunckley joining as part-time director of training.Kinbrook Group has acquired South West accountancy and financial planning firm Old Mill, together with its outsourced finance division Brook Financial. Both businesses will retain their existing brands, leadership teams and operating structures, while gaining access to Kinbrook’s national resources and wider expertise.Coventry-based BRI Wealth Management has added around £40m in client assets through its acquisition of FutureFocus Advisory. The Tewkesbury firm provides advice on pensions, retirement, investments and protection. Founder Colin Donlon will retire following completion of the deal.InvestAcc Group has completed its £25m purchase of AJ Bell’s Platinum SIPP and SSAS operation. The transaction adds 3,400 customers, 46 employees and a Manchester office, while increasing InvestAcc’s total assets under administration to £9bn.MoversStandard Life has appointed Angela Byrne as chief executive of its pension and savings business from January 2026. Byrne joins after 20 years at NatWest, where she most recently served as interim retail bank chief executive. She succeeds Colin Williams and will report to Phoenix Group chief executive Andy Briggs.Sheldon Mills is reportedly preparing to leave his position as the FCA’s executive director for consumers and competition following an extended period of absence. Mills joined the regulator in 2018 and has overseen areas including competition enforcement, the Consumer Duty and artificial intelligence in financial services.Investment Association chief executive Chris Cummings will step down in June following a decade at the helm. The trade body will begin searching for his successor, while Cummings continues his recently appointed role as deputy chair of a government campaign encouraging greater retail investment.True Potential Wealth Management has selected Stuart Dodson as its new chief executive following Steve Hutton’s departure in July. Dodson brings more than 25 years of experience from businesses including Openwork, Newcastle Financial Advisers and Legal & General. He will also join the group’s executive committee.Former NatWest chief executive Dame Alison Rose has joined FNZ as chair of its UK operation and a director of the wider group. She will support the investment platform’s strategy to make investing more accessible, drawing on more than three decades of financial services experience.PortfolioMetrix has promoted UK chief investment officer Alex Funk to chief executive from January 2026, while founder Brandon Zietsman will become executive chair. The wider leadership changes include new chief commercial, operating and financial officers, with Funk retaining investment responsibilities.Barnett Waddingham has recruited Andrew Phipps as head of SIPP proposition and supplier management. Phipps joins from Embark Group and brings considerable pensions expertise, including 16 years with Suffolk Life and Curtis Banks and a previous term as chair of industry body AMPS.Mattioli Woods founder Ian Mattioli is moving from chief executive to the newly created position of founding president, with chair Peter Mann assuming leadership of the business. The changes accompany its merger with Kingswood, creating a £25bn wealth manager with 25,000 clients and ambitions to reach £60bn in assets.Exeter-based Financial Solutions has appointed former Sense Network executive Leanne Williams as managing director, subject to FCA approval. Williams will lead the firm’s 2026 growth strategy and strengthen its support for financial advisers seeking greater independence and operational efficiency.The Association of Member-Directed Pension Schemes has reappointed Debbie Seaton as chair for a second term. Jon Cuin remains honorary secretary, Joy West becomes treasurer and Roger Howman takes responsibility for membership. Hannah Davies has also joined the committee, while former chair Andrew Phipps has stepped down.Former Transact chief executive Jonathan Gunby has joined professional referrals platform RQ as a board adviser. Gunby retired from Transact in March following a 40-year career and will now help RQ’s financial planning clients generate growth through professional connections and referrals.WH Ireland non-executive director Gary Stran has resigned two months earlier than planned. Chair Simon Moore is expected to leave by 9 January and could also depart sooner, with the financially challenged wealth manager seeking replacements as it works to sell key divisions and wind down its remaining operations.Not subscribed yet? Subscribe for the latest news, market trends, and weekly insights - all delivered straight to your inbox.All information provided in this market digest has been gathered from Financial Planning Today and IDEX Consulting.

M&A financial services market analysis: new opportunities for IFAs

IDEX Consulting spoke to James Salmon, financial services M&A specialist, on the state of the M&A market, opportunities for firms and how leaders can differentiate themselves to secure the best possible deal. James shares his thoughts below. How has the 2025 M&A market fared so far?Deal volumes have continued to rise over the past few years, by around 12% year-on-year, with the highest rise since 2021, and so it’s no surprise that there has been a degree of optimism throughout 2025 so far. A key driver of course, was the need for many buyers and sellers to finalise deals ahead of the changes to business asset disposal relief and capital gains tax hikes, which were more outstated than anticipated.Publicly disclosed deal value rose from £2.1 billion to £9.3 billion in 2024, and we anticipate the sentiment to be much of the same in 2025. There’s increased appetite and interest coming from Private Equity backing in the IFA sector, alongside investment banks and regional practices with an interest in national growth and scale.What can we expect to see for financial advice firms throughout 2025?There will be a number of things which continue to influence and develop the market. Several key things to note are:An increase in buy out options– There will likely be an increased interest in buy out options for lifestyle IFAs, facilitated through share and asset purchase deals. Growing regulatory pressure – With intensified scrutiny driven by the Consumer Duty in recent history, alongside new laws shaping market dynamics, companies will need to adapt to changing regulations and compliance. Private equity (PE) investment – Continued overseas private equity interest in acquiring UK assets, alongside appetite from existing PE holdings for consolidation, continues to show promise. The Office for National Statistics (ONS) reported that foreign investors have acquired around £7.8 billion worth of UK firms in the last quarter of 2024. Global private equity firms have record levels of capital to deploy and are under a lot of pressure to either use the money to invest or return it to their original investors, creating an aggressive PE platform. Technology and AI innovation – Acquisition of businesses with AI capabilities offers a relatively efficient way to onboard advanced technology and expertise. In 2024 there was around 857 enterprise tech deals, with value rising to above $30 billion, driven by PE investment and large transactions.Acquisitions based on a retiring IFA workforce – Research shows that around 50% of independent advice firm owners are planning their succession with a key driver being retirement.Is now a good time to acquire or sell?Activity in the market is strong, and the volume of deals is good. The buy and build strategy, especially on a regional level continues to offer firms an attractive and steady way to diversify and provide clients with a wider range of solutions.For those looking to sell, now is as good a time as any to consider the market for options. Although there is of course a degree of political and economic uncertainty, many businesses are proactively leveraging economies of scale for business growth. We expect to see a continued merging of consolidators to take greater precedence this year, as they reach the end of their PE investment cycles and look at extension and reinvestment options.What are the top challenges businesses will face this year, and how can they prepare themselves?Talent attraction - Attracting and engaging the best talent in the market continues to be a challenge for most businesses, especially for specialised roles that require advisory, data, technology and cybersecurity skills. Having the right capabilities and talent in place is an attractive factor for businesses who are considering a sale. Our recommendation would be for businesses to seriously assess their internal recruitment plan and employer branding strategy to help ensure the topic of talent doesn’t dampen expectations.Rising class 1 employer national insurance – From April 6th employer national insurance will rise by about 1.2%, from 13.8% to 15%, with no immediate reprieve in sight, creating an additional strain for employers. This is particularly true of small and medium sized enterprises which are already operating on tight margins and are likely to have fewer resources to be able to absorb increases and reinvest. This squeeze on profitability is likely to encourage businesses to evaluate how they can offset this additional financial burden. FCA’s change in control process – Those considering disposal will be aware that increased regulation is delaying the Change in Control process. Understandably sellers and buyers are becoming frustrated given many want to complete before the April 6th increase in Business Asset Disposal Relief and Capital Gains Tax. What was once a 60-day standard review can now be paused mid cycle, extending to lengthier timeframes on more complex transactions, creating a great deal of uncertainty. The impact of consumer duty on integration – Consumer Duty has shone a light on acquisitions with firms now taking a more conscious perspective on how they onboard and integrate partners to align with regulation whilst maximising ROI. To comply with regulation, pricing structures need to be aligned to drive consistency of service, ensure fair value and at the same time ensure profitability for investors and shareholders. Those who are prepared well for Consumer Duty, will have a market proposition which makes for a smoother transition and integration process.What opportunities are there for buyers?There’s a broad and deep mix of opportunities in the market for buyers, based on a number of factors:Retiring advisors and succession planning The average age of a financial advisor is 58 and around 50% of financial advisors are expected to retire in the next ten years, but only a third have succession plans in place. Market consolidationWe’re seeing more scale driven consolidation, as smaller firms continue to struggle with increasing compliance costs, technology demands, and talent needs.M&A transactions in the wealth management sector reached record levels in 2023-2024 with the average deal size growing from $1.8B AUM in 2022 to $2.3B AUM in 2024. Growth potential Projected compound annual growth rate for the global wealth management market is estimated to be around 9.2% by 2030, offering a scope of opportunities for IFAs. Specialised acquisitions involving niche areas around ESG and AI, or those which will help attract new client demographics, will help to accelerate growth into new and existing geographies.Technology integrationThis year AI capabilities will reach new heights and the ability to integrate new platforms and systems to increase operational efficiency will be crucial. Research shows that firms with strong digital platforms tend to have a higher productivity rate per advisor, of at least 30-40%. 78% of advisors cite technology integration as a major challenge in post-acquisition integration, so being able to get ahead of this will considerably aid competitive advantage. What opportunities are there for vendors?There’s a wide pool of active vendors in the market looking for quality merger or acquisition opportunities, and we see a ‘sellers’ market forming across the sector. This is further evidenced by the increasing demand from consolidators, private equity firms and larger wealth management organisations for increased deal flow.Due to increased regulatory scrutiny, buyers often have a more defined and Consumer Duty compliant proposition than ever before, offering vendors more security from a client continuity perspective.These greater controls coupled with greater scale, capital, and operational efficiency, creates an attractive proposition for both the vendor, their team and clients.For those looking to sell, how can they differentiate themselves from other businesses and make themselves appealing to buyers?There are a number of critical factors when considering your plans to merge or exit:Plan ahead –Those who have a deep understanding of the inner dynamics of their business, are likely to be prepared to address challenges that come with an acquisition. Anything a vendor can do to minimise disruption and risk during integration will put them at a huge advantage in ensuring both continuity and the achievement of earn-out. Acquisitions take time, and getting on the front foot enables business owners to mitigate against perceived challenges and achieve transaction success.Conduct a thorough review and analysis – A SWOT analysis can be a simple but effective way to assess your opportunities, strengths and potential threats both for your business and in the marketplace. Understanding this will help you minimise risk and alleviate issues before they become problematic.Seek advice from a trusted broker – Engage with a well-connected and trusted broker who understands the market. M&A experts have strong connections in the market and can help match you to the right partner. A broker can also help promote and pitch your proposition effectively in the marketplace, to help attract suitable buyers who align with your values, whilst addressing challenges which may later arise through a transaction.Prepare information ahead of time – Vendors often underestimate the depth of information required for the due diligence process. Always try and put yourself in the shoes of the buyer – what would you want to see and analyse to bring you the confidence that this is the right deal?Explore your trade-offs – What are you willing to compromise on to achieve the best deal? What's important to you? What’s a non-negotiable for your clients, your team and long-term goals? This will help you identify which acquirer presents the best and most secure opportunity, that aligns with your vision. Why should a buyer or seller partner with IDEX?IDEX Consulting are different to other brokers, we are an independent advisor uniquely positioned to provide impartial consultancy to those exploring their buy-and-sell options. We partner closely with firms to ensure we truly understand their values and long-term objectives. This helps us to dissect the market and filter out acquirers whose values and motives don’t align with that of a vendors.For us it’s not just about a sale or acquisition, it’s about enabling and supporting the lifestyle, financial and personal goals of everyone involved to ensure the best outcome is achieved. Due to our talent management and marketing expertise, we also help businesses with future growth post integration through innovative value propositioning and talent insights.Our team of M&A consultants have over 150 combined years of experience, with an established network of over 40,000 UK and international businesses, having introduced £13 billion AUA of opportunity to firms across the financial services sector. We also work with a range of legal, financial, tax and regulatory specialists to equip our clients with invaluable knowledge and support, who all work to support each stage of a transaction.For a confidential chat on the M&A market or if you’re looking to explore your options, contact our financial services M&A consultant, James Salmon.