By Steve Conley, Founder of the Academy of Life Planning
The Financial Conduct Authority (FCA) is turning up the heat on financial advice firms that have been sold to consolidators — particularly those backed by private equity (PE) and loaded with offshore debt. Their latest review reveals a complex web of ownership structures, high-risk borrowing, and potential conflicts of interest that could directly affect you as a client.
So, what does this mean for your money — and what should you be watching out for?
🔍 What’s Going On?
The FCA is investigating:
- Private equity control of advice firms.
- £3.4 billion in group-level debt, much of it held offshore in tax havens like Jersey and the Cayman Islands.
- Vertical integration, where the adviser, platform, and product manufacturer are all owned by the same parent group — creating a built-in conflict of interest.
⚠️ What Are the Risks to Clients?
1. Conflicted Advice
When advisers work for firms owned by PE investors, they may be under pressure to sell in-house products — even when better options exist elsewhere. It’s like a supermarket only stocking its own-brand goods and claiming they’re the best on the market.
2. Financial Instability
High-interest debt (often above 10%) can strain the firm’s resources. If debt repayments take priority, cost-cutting could affect service quality — or worse, your investments might be exposed if firms are forced to restructure or sell assets.
3. Reduced Transparency
Many PE owners sit outside the FCA’s regulatory perimeter. That means the real decision-makers may not be accountable to UK financial regulation — a dangerous gap in governance.
4. Compromised Service
Consolidation often means staff changes, service centralisation, or offshoring. Clients may lose their trusted adviser and find themselves rerouted to call centres or junior teams.
🏴 Firms to Watch
While not an exhaustive list, the following consolidators have raised regulatory eyebrows due to rapid expansion, offshore structuring, or debt levels:
- Ascot Lloyd
- True Potential
- AFH Wealth Management
- Tavistock Investments
- Amber River
- Titan Wealth
- Perspective Financial Group
These firms may still offer sound advice — but clients should proceed with eyes wide open.
💬 What Should You Be Asking?
If your firm has been acquired or restructured, ask:
- “Who now owns my advice firm?” – Is it a private equity group? Where is it based?
- “Are my adviser’s recommendations truly independent?” – Or are they incentivised to push in-house funds?
- “What happens if the parent company runs into financial trouble?” – Is my money at risk? Are client assets ring-fenced?
- “Have there been recent changes in service or staff?” – How has consolidation affected day-to-day support?
✅ Your Next Steps
- Request Full Transparency: Ask your adviser to explain any changes post-acquisition — in writing.
- Review Product Choices: If you’re being moved into new products, question why — and whether better alternatives exist.
- Seek a Second Opinion: Consider getting an independent review of your plan, ideally from a financial planner unaffiliated with the consolidator.
- Check Regulator Alerts: The FCA publishes updates on firm performance and red flags. Stay informed.
🌱 A Safer Way Forward
At the Academy of Life Planning, we champion independence, transparency, and empowerment. We help individuals become their own financial planners — or work with ethical, non-conflicted advisers. Our message is simple:
“Plan your life before you plan your money.”
Don’t let opaque ownership and high finance come between you and your future. Ask questions. Demand clarity. Take control.
Want help making sense of the information you’ve been given about your advice firm or investment plan? We’re here to guide you through the pros and cons with clarity and neutrality—so you can take informed, confident ownership of your financial future.
Your Money or Your Life
Unmask the highway robbers – Enjoy wealth in every area of your life!
By Steve Conley. Available on Amazon. Visit www.steve.conley.co.uk to find out more.
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