UK FCA wealth management survey report

The UK Financial Conduct Authority (FCA) has published its latest wealth management survey report for 2026, focusing on discretionary portfolio management. The report shares data and insights to help firms understand the market, compare their approach and raise standards. Drawing on survey data from around 400 wealth management firms, as well as regulatory returns and other FCA and public data sources, the FCA highlights both progress and persistent weaknesses across the sector.

Key findings are set out below in the following areas:

• AI adoption—13% of firms currently use AI tools and 45% are using or considering AI, but the FCA warns that firms must use these tools responsibly and understand associated risks around fraud, cyber security and client harm.
• Outsourcing—92% of firms outsource part of their business, with the FCA emphasising that firms remain responsible for the services they provide and must ensure strong oversight, so clients receive consistent outcomes.
• Financial crime controls—some firms still do not refresh Know Your Client checks for higher-risk clients after a trigger event or at least annually; 26% do not collect expected transaction frequency; around 6% do not screen for politically exposed persons; and around 7% do not carry out sanctions screening.
• Fair value—the FCA's Financial Lives 2024 survey found that 17% of clients using a named wealth management firm were concerned that fees were high, hidden or complex, indicating pricing is not always clear or consistently applied.
• Consumer vulnerability—83% of firms now identify at least one client with characteristics of vulnerability (up from 68% in the first survey), yet practices remain inconsistent and firms are urged not to treat vulnerability as a one-off assessment.

The FCA confirmed it will not repeat the full survey this year but intends to issue a shorter version in 2027, focused on portfolio management activity. The FCA will continue to look for smarter ways to use data and engage with the sector.

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