In 2025, it is bewildering—if not infuriating—that financial advisers are still selling the myth of superior investment performance as their “value proposition.” Despite decades of academic evidence and a growing body of consumer experience pointing to the contrary, the illusion persists. And more troubling still, it is being tolerated—if not tacitly encouraged—by the very regulator entrusted with consumer protection: the Financial Conduct Authority (FCA).
Let’s be clear: no regulated financial adviser controls investment performance. Markets are unpredictable, client outcomes are subject to risk, and performance is ultimately determined by broader economic forces, not by adviser prowess. So why does the FCA’s Financial Lives 2024 survey report that the most common consumer complaint is poor investment performance? And why do 50% of advised adults believe that performance justifies the fees they pay?
A Legacy of Misdirection
The advisory industry’s “secret sauce” narrative is a holdover from an era when performance-chasing was the primary sales hook. Today, it’s out of step with the FCA’s own rules on suitability, disclosure, and fair value. Yet 23% of advised investors experienced problems in the past year, with poor investment performance being the most cited issue (5.7%). If advisers aren’t managing the portfolios directly, this points to misaligned expectations—likely set by the adviser themselves.
Misunderstood and Misinformed
Equally concerning is the 20% of advised adults who say they do not understand what financial advice costs, a figure that has worsened since 2020. This lack of transparency fuels dissatisfaction and undermines trust—yet it persists.
And it’s not just those who are advised. 91.4% of the population remained underserved in 2024. A staggering 29% of adults had not received regulated advice in the last 12 months despite potentially needing it, often due to access issues, low trust, or simply not knowing where to turn.
This is not just a communications failure—it is a systemic failure of accountability.
Regulated to Sell, Not to Advise?
Many advisers still operate under a product-centric, sales-based model, cloaked in the language of impartial guidance. The rise of ongoing charges—paid by 62% of advised consumers—has entrenched a structure that rewards retention over results. And when only 1.5% of consumers use automated (robo) advice despite 25% awareness, it’s clear that technology has not yet been used to democratise or depersonalise investment support at scale.
So why does the FCA allow this to continue? One reason may be structural capture: an industry where regulatory revenue is derived from the very firms it is supposed to police. Another may be political—the push for “growth” has prioritised adviser profitability over consumer empowerment.
Time for a New Narrative
It’s time we stop pretending that advisers are alchemists who can beat the market and start holding them to account for the things they can control:
- Educating clients about long-term investing
- Aligning financial strategies with life goals
- Being transparent about costs and limitations
- Offering behavioural coaching, not performance myths
The Financial Lives data tells a story the regulator should be responding to with urgency. Instead, we have silence—or worse, complicity.
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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