Why advisers must place themselves firmly at the centre of the wheel – Howes

The regulator itself has acknowledged the difficulty in pinning down precisely what holistic advice means in practice, and that ambiguity should give the intermediary sector pause for thought.

If those responsible for overseeing the market cannot easily define it, advisers and firms cannot afford to assume its meaning is obvious.

At the same time, the operating environment is shifting. Execution-only channels continue to expand, product transfers are increasingly driven through lender apps, and artificial intelligence (AI) is capable of comparing rates and criteria within seconds.

In that context, any version of advice that appears to revolve solely around product selection risks being narrowed to a transactional function. If we do not define the substance of advice clearly and confidently, it will be defined for us by technology, by lenders, or by regulatory categorisation.

The wheel-and-spoke model

One way of approaching this challenge is to visualise advice not as a straight line between client and lender, but as a wheel. At the centre of that wheel sits the adviser.

Radiating outwards are the spokes: residential mortgages, buy to let (BTL), specialist lending, protection, general insurance, later life planning, tax considerations, estate planning, and trusted relationships with accountants and solicitors. The mortgage is often the entry point into that wheel, particularly for first-time buyers or homemovers, but it is rarely the only financial decision of consequence taking place at that moment, or indeed in the future.

Most advisers already operate elements of this model, albeit without always describing it as such. A self-employed client will often be referred to an accountant to ensure income is presented appropriately. A landlord expanding a portfolio may require both accountancy expertise and tax guidance. A family arranging a mortgage will typically discuss life cover and income protection alongside it.

The individual components are familiar; what is less consistently articulated is that the adviser is the central coordinator of that network, responsible not merely for arranging products but for aligning multiple strands of financial decision-making.

Holistic advice, viewed through this lens, is not about attempting to deliver every service in-house, nor about complicating straightforward cases. It is about recognising that most clients’ financial lives are interconnected, and the adviser is uniquely placed at a pivotal moment in those lives.

When a client secures a mortgage, they are making decisions about debt, risk, protection, tax exposure and future flexibility, often simultaneously. To treat that as a one transaction is to understate its significance.

Advice versus transaction

The need to lean into this broader circle of influence becomes more pressing as parts of the mainstream market become increasingly commoditised. If the visible output of advice is simply the sourcing of a competitive rate, it is unsurprising that clients may question why they should not transact directly, particularly when prompted by a lender’s app suggesting both speed and convenience.

However, where cases involve complex income structures, credit impairment, portfolio BTL strategies or later life lending considerations, the adviser’s judgement and experience is crucial. In those areas, criteria cannot be applied mechanically without risk, and the trade-offs involved require interpretation rather than simple comparison.

This does not mean abandoning mainstream business, but it does suggest firms may need to place greater emphasis on the areas where their circle of influence is most valuable.

Specialist and later life lending, in particular, demands a depth of understanding that is not easily replicated by automated systems, and it provides a clear demonstration of how advice extends beyond the product itself to encompass structure, sustainability and long-term planning.

Defining advice on our own terms

Against this backdrop, the absence of a clear regulatory definition of holistic advice may, paradoxically, offer the sector an opportunity. Instead of waiting for a formal description, firms can define their own operational model.

That means embedding protection discussions as a mandatory part of every mortgage conversation, formalising referral relationships with tax and legal professionals, or using client portals to ensure all elements of the client relationship remain visible and connected over time. It may also mean documenting and communicating more clearly the ongoing monitoring and review work that often happens behind the scenes but is not always recognised by clients.

Ultimately, advice in the current environment cannot be defended solely on the basis of access to products. It must be framed as the structured management of choice within a complex financial landscape.

The wheel-and-spoke model is not a marketing device; it is a practical reminder that advisers sit at the centre of a client’s financial decisions at moments that carry long-term consequences. If firms consciously strengthen that position, leaning into specialist expertise where appropriate and making full use of their wider professional network, then ‘holistic advice’ ceases to be a vague aspiration and becomes a clear, defensible model for the future.