The Evolution of IFA Advice Reports in 2025

IFA advice reports, for many firms, haven’t changed in decades. A bit more digital, perhaps. Branded PDFs instead of folders. But the structure? The assumptions? The delivery? Mostly unchanged. However, new research suggests that will not cut it anymore.

In July 2025, AdviserSoftware.com released its first wave of a study titled Building the Business Case for Digital Advice. The findings cut straight to the heart of the advice profession. Clients are wanting something different and they’re willing to pay for it.

This is based on feedback from 4,000 UK consumers across a wide range of age groups, wealth brackets, and advice experiences.

Partial Advice has become the Norm, and No Longer the Exception

Here’s a statistic that should stop any advice firm in its tracks: among UK consumers with over £1 million in investable assets, just 7% receive advice on all their assets. But 42% receive advice on some. That’s a sixfold gap.

It’s not just high-net-worth clients. Even among savers with £100k–£250k, only 6% hand over their full financial picture. 30% engage advisers on a partial basis. In short, the traditional model in which an adviser controls the whole portfolio, is not what most people do anymore.

This has huge implications for how IFA advice reports are built. If a report assumes full oversight, it is out of touch with what the client is experiencing. And without access to employer-sponsored pension data or ISA performance from another provider, how accurate can an asset allocation recommendation really be?

Ian McKenna of AdviserSoftware.com put it bluntly: “Where a client is receiving advice on their personal savings, advisers can fully analyse the asset allocation… It is far more difficult, bordering on impossible, for advisers to access the same information about a workplace pension.” This disconnect impacts suitability and weakens the end report.

Digital Advice is Not a Trend

According to the same research, 31% of consumers would already prefer digital advice over in person or phone options. Another 23% are open to hybrid models of technology with the addition of limited human input. And 8% are comfortable going fully digital, including AI-assisted support.

The generational divide is stark. Consumers under 45 are leading the charge toward digital-first interactions. And many are surprised to find that even wealthier households are leaning this way. Over half of consumers with £500k–£1m in assets said they’d pay for a virtual legal service. The same goes for 53% of those with £1m or more.

Clients expect their advisers to meet them where they already are, whether that be online, mobile, and/or used to hybrid service models. A printed suitability report, no matter how robust, doesn’t speak to the way people absorb and act on advice anymore.

IFA advice reports must adapt. That means cleaner summaries, interactive formats, layered digital explanations, and mobile-friendly access. None of this is revolutionary, but for most firms, it’s still on the to-do list.

The Cost Pressure is Real, Especially for Smaller Firms

While expectations rise, operating conditions tighten. Craig Wright of Evelyn Partners pointed out that in 2025, smaller IFA firms will likely need to re-evaluate staffing due to rising employment costs. Minimum wage hikes, increased National Insurance contributions, and administrative strain from ongoing Consumer Duty compliance are already squeezing margins.

Larger firms can absorb costs through automation or scaling. Smaller ones don’t always have that cushion. Advice firms at every scale are on the same mission – streamline what you can, without eroding value.

That includes your financial advice reports. Every minute spent rewriting the same template or reformatting output is time lost. Digitising advice is only a small piece of the puzzle.

Consumer Duty Changed More Than Just Compliance

Wright also noted how Consumer Duty “spurred innovation” across the industry. Advisers are now expected to demonstrate fair value, not just deliver it. That means suitability letters and IFA advice reports can no longer be padded with boilerplate or vague reasoning.

Instead, they need to show clear outcomes, justifiable charges, and measurable benefit to the client. This is particularly where structured digital tools can help if they are used deliberately.

A templated report that references vague client goals or broad risk profiling won’t meet FCA expectations anymore. Nor will a standard 12-page PDF stuffed with graphs but light on explanation.

Clients want simplicity and clarity in their reports. Regulators want to see the evidence. Reports should do both efficiently.

If Your Reports Still Look the Same, You’re Missing Opportunity

IFA advice reports are still one of the few tangible deliverables advisers produce. Yet many reports fail to reflect the complexity of today’s clients.

But we can see from the research that the appetite for targeted advice, better delivery formats, and broader service options is there.

Our Final Thoughts On IFA Advice Reports in 2025

Whether you are running a large multi-adviser firm or a one-person practice, your IFA advice reports are a litmus test. Not just for regulatory compliance, but for whether you truly understand your client.

Start there. Look at your most recent reports and ask yourself:

• Does this reflect how the client actually engages with their money?
• Is the format helping or hindering their decision-making?
• Could someone under 45 read this on their phone and make sense of it?

If the answer is no, it might be time to rebuild.

For the full Building the Business Case for Digital Advice study, visit AdviserSoftware.com. And if you’re revisiting your report templates this quarter, do it with fresh data and realistic expectations, not habits from ten years ago.

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