The Personal Investment Management & Financial Advice Association (PIMFA) has published a report detailing its findings on trust, culture, artificial intelligence (AI), and the future of financial advice, following 10 months of work with its ‘Leading Lights Forum’.

The forum brought together professionals from across the wealth and financial advice sector, working in four specialist groups that explored the barriers to advice, trust, AI, and company culture.

The future of advice

The research group on the future of advice found that the perception that financial advice was only for the wealthy was shifting, with two-thirds of survey respondents believing that advisers worked with clients holding less then £100,000, while almost half thought £50,000 was enough.

Barriers to engagement stemmed from affordability and accessibility, with 47 per cent of those who felt they lacked the money to seek advice turning to self-directed investing, while 50 per cent did not invest at all.

Just 9 per cent of UK adults received regulated advice last year, despite 91 per cent of advised consumers stating it was helpful.

The group also found that consumer demand for one-off, event-driven advice had increased by 10 per cent since 2023, while employer-led advice and hybrid models were expected to provide scalable solutions for early engagement.

Trust

The trust research group emphasised the importance of trust being treated as a measurable, manageable asset, noting that firms can use structured trust frameworks to set key performance indicators and strengthen performance.

Its analysis indicated that trust declined after the age of 45, which it said highlighted the need to engage younger consumers early through digital, low-cost, or subscription-based services.

The group also argued that a more balanced narrative from regulators and the media was needed to counteract perceptions of industry self-interest, and that firms needed to improve communication, visibility, and client intimacy.

Artificial intelligence

Successful AI adoption would rely on clear strategy, problem definition, and alignment with firm-wide targets, according to the research group on AI.

It stated that human interaction remained crucial in ‘moments that matter’, either emotionally or financially, and AI should therefore augment, not replace, the adviser.

Meanwhile, strong ethical and governance frameworks on AI were identified as essential to prevent poor client outcomes or operational risk.

Firms were encouraged to choose AI solutions that aligned with their strategic vision and target specific opportunities, especially across younger generations.

The group emphasised that AI was not a one-size-fits-all solution, and effective implementation required clarity, oversight, and targeted application.

Company culture

The fourth and final research group looked at company culture, which it believed must operate as both a ‘carrot and a stick’, with practical applications in everyday behaviours.

It highlighted that a firm’s culture was most noticeable when things were not going well, with poor cultural alignment shaping decisions, behaviour and overall resilience.

Firms were urged to adopt dual strategies for generational engagement; embed culture in operations and governance; prioritise inclusion and representation; accelerate digital transformation and personalisation; foster continuous adaptation; align external messaging with internal reality; and measure and publicly report cultural impact.

“This year’s Leading Lights Forum has delivered an outstanding body of work that captures the challenges, opportunities and evolving expectations facing our industry,” commented PIMFA chief executive, Liz Field.

“Their insights demonstrate not only the importance of trust, culture and technological innovation, but also the critical role financial advice plays in improving long-term financial wellbeing.

“We are immensely proud of the commitment and insight shown by all participants, whose contributions will help shape PIMFA’s strategic thinking as we all work across the industry to support better client outcomes.

“I would like to extend our sincere thanks to all members of the forum, our research partner Savanta, and everyone involved in the programme.”

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