Financial advisers are focusing on client service and retention going into 2026 amid ongoing regulatory pressure and political uncertainty, according to TFAS Compliance Services (TCS).

Its study found that 90 per cent of advisers saw continuing to service and support existing clients as a top priority for the year ahead.

Meanwhile, half (50 per cent) of advisers believed targeting growth in overall business value was a priority, while 46 per cent planned to increase their client numbers.

When asked about the biggest opportunities going into 2026, 71 per cent of advisers pointed to the growing need for advice.

Nearly two thirds (60 per cent) cited changes in tax and pension rules as a primary opportunity, while 43 per cent highlighted the provision of intergenerational advice.

Advisers saw governmental and regulatory changes as their biggest challenge in 2026, with government action and policy cited as a top concern by 65 per cent of respondents.

This was followed by regulation (60 per cent) and more specifically Consumer Duty (58 per cent).

More than half (57 per cent) of advisers were focusing on reviewing processes to manage compliance risk.

Furthermore, 46 per cent of advisers highlighted the administrative burden on advice firms.

When asked about introducing simplified advice, just 7 per cent of advisers said they planned to do so, while 21 per cent stated they would consider it with more information.

Nearly three quarters (72 per cent) said they had no plans to offer simplified advice in the near future.

Advisers also showed uncertainty towards artificial intelligence (AI), with 55 per cent unsure about whether it would have a positive impact, while 40 per cent felt it would have a positive impact.

Just over half (55 per cent) of advisers were already using or planned to use AI tools, most commonly for general support and summarising client meeting noted.

However, 77 per cent said they did not plan to increase their technology use in 2026, with just 18 per cent expecting to adopt new tools this year.

“It’s great to see advisers maintaining such a strong client focus and optimism in the face of ongoing regulatory and political pressures,” said TFAS Enterprises chief commercial officer, Richard Ardron.

“As the demand for advice continues to increase, firms continue to adapt, from embracing AI to create much needed efficiencies to ensuring that they have the right systems and controls in place to meet the requirements of a data-led regulator."

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