UK financial advice firms are entering a period of structural change, driven by ISA reform, the FCA’s evolving advice framework and a series of Budget measures that are reshaping long-term planning priorities, according to FE fundinfo’s Jodie Gallagher. Sharing her thoughts below, Jodie emphasises how these forces are pushing advisers to rethink how they serve new investors, scale advice compliantly and broaden planning beyond the individual client.
According to Jodie Gallagher, Head of UK IFA Product at FE fundinfo, 2026 will mark a decisive moment for advice models as firms adapt to a growing and more diverse investor base.
First-time investors and lower-friction advice models
ISA reform is expected to bring a new cohort of investors into the market, many of whom will be making investment decisions for the first time. Gallagher says this will test traditional service structures and accelerate the development of simpler, more accessible propositions.
“The cash ISA cap will push millions of savers to consider investing for the first time, and they’ll need help doing it,” she says. “Expect advisers to develop entry-level investment propositions and streamlined onboarding for clients with simpler needs. Those who adapt their service models now will capture a whole new generation of engaged investors.”
For advisers, the challenge will be supporting these clients without increasing friction or compliance risk, while still delivering good outcomes under Consumer Duty.
Targeted support comes of age
Alongside ISA changes, the FCA’s new advice framework is set to formalise targeted support as a core part of the advice landscape. Gallagher believes the timing creates a significant opportunity for firms that can scale effectively.
“2026 is the year targeted support comes of age,” she says. “The FCA’s new regime lands just as ISA reforms push more people toward investment decisions, timing that creates real opportunity.”
She adds that targeted support will allow advisers and providers to reach clients who have historically sat between guidance and full advice.
“Advisers and providers who build scalable, outcome-focused propositions will reach clients who’ve historically fallen through the gap between guidance and full advice,” Gallagher says. “AI will accelerate this shift, enabling firms to deliver goals-based planning at scale and improve client outcomes.”
From individual optimisation to multi-generational planning
Budget measures affecting pensions and inheritance tax are also prompting advisers to widen their planning lens. Gallagher says this will drive a shift away from purely individual optimisation towards family-wide advice models.
“Pensions in IHT scope rewrite the planning rulebook,” she says. “It’s no longer enough to optimise for the client in front of you; advisers will need to understand children’s tax brackets, inheritance timing, and family-wide wealth flows.”
As a result, she expects multi-generational planning to become central to advice frameworks over the next few years.
“2026 will see a decisive shift from individual advice to multi-generational, goals-based planning,” Gallagher adds.
