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% of advisers saw continuing to service and support existing clients as a top priority for the year ahead.

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

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

Three in five (60%) cited changes in tax and pension rules as a primary opportunity, while 43% 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% of respondents.

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

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

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

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

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

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

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

However, 77% said they did not plan to increase their technology use in 2026, with just 18% 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."

---