This Week in Brief

This week the story is AI changing who delivers financial advice, not just how. HSBC is reported to be cutting most of its UK wealth advisers in favour of AI-supported digital services, while fresh research shows AI use is now mainstream among advice firms and that clients increasingly arrive with AI-generated information of their own. For independent firms, it is a timely reminder of where human advice adds the most value.

Key Developments

HSBC Reported to Be Cutting Up to 70% of UK Wealth Advisers as AI Takes Centre Stage

Multiple outlets reported on 7 October that HSBC plans to cut up to 70% of the advisers in its UK wealth business, along with around half of its management and specialist roles, with affected staff expected to leave by the end of October. The bank is still consulting staff, and the reports describe AI tools for faster market insight and tailored investment strategies as central to the plan, with human advice reserved for clients with more complex needs. For IFAs, this is a clear sign of how a large bank sees the balance between digital and personal advice, and a possible opportunity to speak to clients who value a named, independent adviser. Treat the figures as press reports until HSBC confirms them. (The Wealth Advisor, 7 October 2026; ITV News, 7 October 2026)

Global Survey: Planners Expect AI to Improve Advice, and Clients Are Bringing AI Answers With Them

The Financial Planning Standards Board published its 2026 global research, covering more than 8,000 planners in 37 territories. Most respondents (83%) expect AI to help them serve clients more effectively, and 68% think it will lower the cost of advice. About one in five say client use of AI has increased the need to correct or put that information in context. In practice, that means preparing for clients who have already “asked a chatbot” before your meeting, and being ready to explain where your advice differs and why. (Lifestyle & Tech, 7 October 2026)

Adviser AI Use Reported at 60%, but Mostly for Single Tasks

A Professional Adviser opinion piece on 8 October, citing research from The Lang Cat, says adviser use of AI has risen from 29% to 60% in a year, and to 88% among firms managing over £1bn. The author’s point is that most firms still use AI for one job, such as meeting notes, rather than across the business, and that the real gains come from joining the steps together. If you already use an AI note-taker, the next question is what else in your client journey could follow on from it, such as file notes, suitability report drafts and follow-up tasks. (Professional Adviser, 8 October 2026)

From the Trade Press

  • Beyond the meeting note: Five stages of AI maturity in financial advice — Opinion on how advice firms can move from single AI tasks to firm-wide use, citing a jump in adviser AI use to 60% over the past year. Professional Adviser, 8 October 2026

  • Why the new chancellor must rebalance growth and consumer protection — James Daley argues the regulatory pendulum should not swing too far towards growth, and credits Consumer Duty with raising standards. Useful context for how any AI rules may be framed. Professional Adviser, 9 October 2026

What to Watch

Update on last week: the FCA’s good-and-poor-practice report from its AI Live Testing programme is still expected later this year. Meanwhile, watch whether HSBC confirms its plans and how clients and the regulator respond to a bank moving advice to digital channels, as Consumer Duty outcomes will be the yardstick.

Sources: Professional Adviser, web search. Compiled 9 October 2026. FT Adviser and Professional Adviser were checked via their public pages rather than a logged-in browse, so paywalled content was not read in full.