As artificial intelligence continues to reshape the financial services landscape, many firms are asking what the future of advice will look like. But while the FCA’s recent Mills Review has sparked widespread discussion around AI, its broader message is about far more than technology alone. In this opinion piece, Adam Newman, Head of Sales at Twenty7tec, explores why the real challenge for advice firms lies in building the right operational foundations to support innovation, strengthen governance and deliver better client outcomes in the years ahead.
Rather than introducing a new rulebook, it offers a glimpse of how the regulator believes financial services will evolve over the coming years, with support becoming more personalised, more proactive and increasingly assisted by intelligent technology.
Crucially, responsibility for advice, customer outcomes and regulatory compliance remains firmly with the adviser and the firm providing the service. That makes this much more than simply a conversation about AI, it raises a broader question about whether advice firms have the infrastructure, governance and operating model needed to support the next generation of financial advice.
Because adopting new technology is one thing, but creating an environment where it can be used effectively, responsibly and consistently is something else entirely.
Many financial planning firms have invested in new systems over a number of years, often to address individual business requirements as they arose. Customer records, financial planning, research, compliance, communications and reporting may all be supported by capable platforms, yet they frequently operate independently of one another.
The result is duplicated administration, fragmented data and advisers spending valuable time and energy moving between applications instead of focusing on the people they support.
Those inefficiencies become more significant in the environment the FCA describes. Delivering more relevant support depends on advisers having access to complete, reliable client information throughout the relationship, allowing routine activity to be automated without losing sight of the wider circumstances behind every recommendation.
Intelligent tools can undoubtedly improve productivity, but they remain dependent on the quality and consistency of the data they’re working with.
That changes what firms should expect from the systems they invest in. Rather than simply recording information or managing individual cases, platforms increasingly need to become the operational hub of the business, bringing together client records, workflows and specialist tools within a single environment.
Capturing information once and making it available across every stage of the client journey reduces unnecessary administration, strengthens oversight and gives advisers more time to apply their expertise where it creates the greatest value.
The FCA also envisages a future where financial support becomes more continuous rather than centred on occasional interactions, a direction that has implications far beyond annual reviews.
Maintaining regular contact, managing review schedules, sharing documents securely and recognising changes in circumstances all become integral to delivering an ongoing service, creating more opportunities to demonstrate value while ensuring advice remains relevant as clients’ needs evolve.
Supporting that approach requires more than efficiency alone. As automation becomes increasingly embedded within financial services, firms will need clear governance, reliable audit trails and consistent workflows that enable them to evidence how decisions have been reached while maintaining appropriate oversight.
The report makes it equally clear that, while technology will continue to evolve, accountability will not move with it.
None of this diminishes the role of the adviser, if anything, it reinforces it. As routine activity becomes more streamlined, professional judgement, experience and the ability to build trusted relationships become even more valuable. The objective should be to remove friction from the advice process, not from the relationship itself.
Perhaps that’s the report’s most important message. The question facing advice firms isn’t whether artificial intelligence will become part of financial services, but whether businesses are ready for the opportunities and responsibilities it will bring.
The firms best placed to thrive over the next five years are unlikely to be those chasing every new innovation as it emerges. They’ll be the ones that have already built the right foundations, where information flows seamlessly, routine activity happens efficiently and robust controls provide the confidence to embrace new capabilities without compromising customer outcomes.
Technology may reshape the way advice is delivered, but the firms that succeed will still be those that combine innovation with sound judgement, trusted relationships and an unwavering focus on doing the right thing for every client.
