There’s been plenty of discussion recently about how regulation and technology might reshape the relationship between lenders and advisers.
From the FCA’s decision to remove the automatic advice trigger on certain interactions, to speculation about product transfer remuneration, it’s clear the industry is moving through another phase of change.
But rather than viewing this as a threat, advisers should see it as a moment to go on the front foot and to remind both lenders and borrowers why advice continues to sit at the heart of good customer outcomes.
The changes we’ve seen this year point to a growing desire for speed, simplicity, and efficiency. Those are fair aims, and advisers share them. The reality, though, is that efficiency doesn’t have to come at the expense of advice. Advisers have proved they can deliver both: fast, compliant processes combined with the reassurance of personalised guidance. We have shown again and again that advice and innovation can work hand in hand.
What’s important now is that advisers make the case for advice more visibly. Every lender, and every borrower, should be reminded that the intermediary channel isn’t simply a sales route, it’s a safeguard. Advisers bring context to affordability, foresight to product choice, a holistic view across all wants and needs, and continuity across a client’s lifetime.
Those are advantages that no algorithm or self-service portal can replicate.
It’s worth remembering that over 90% of all mortgage business still comes through the advisory distribution channel. That dominance hasn’t happened by accident. It’s a reflection of how borrowers behave when faced with major financial decisions.
They want the comfort of professional guidance, the ability to ask questions, and the confidence their circumstances have been properly assessed. Consumer Duty reinforces this, demanding we make sure customers understand what they are buying and that the recommendation is suitable for them. Few channels deliver on that better than advice.
That doesn’t mean advisers should ignore some of these potential bumps in the road ahead. Some lenders will inevitably explore ways to increase direct engagement or introduce more tech-led retention models.
The best response is not defensiveness but proactivity and that’s undoubtedly what we are doing as a network with our AR firms. Strengthen client relationships, communicate regularly, and make the value of your ongoing service unmistakable. When clients clearly see how much better protected and better informed they are with an adviser, they are far less likely to drift toward non-advised options.
We can also be confident that the market itself recognises the benefits of advice. Advisers have improved affordability standards, reduced arrears, and supported lenders in meeting regulatory expectations.
The advisory model has underpinned the stability of the mortgage market for a long time. Lenders should know that well-advised borrowers’ loans perform better, stay longer, and are less likely to fall into difficulty. Those are outcomes that every lender should want.
There will always be discussion around cost and efficiency, but advisers add value far beyond the procuration fee. They generate well-prepared cases, help borrowers choose suitable products, and deliver cleaner pipelines.
That reduces risk, saves processing time, and ultimately enhances lender profitability. If advisers keep demonstrating that, they stay indispensable.
So while the regulatory mood music may occasionally sound as though advice could become optional, advisers have the evidence, experience, and customer loyalty to prove otherwise. This is the moment to push harder on what we do best: building trust, guiding complex decisions, and ensuring clients achieve the outcomes Consumer Duty demands.
Markets evolve, technology changes, and policy priorities shift. But advice has remained central for one simple reason: it works. The challenge for advisers now is to keep telling that story – confidently, consistently, and publicly – so no-one forgets where the real value lies.
Sebastian Murphy is group director at JLM Mortgage Services
