An exclusive article by Fred Kahn
The UK Government’s decision to centralise anti-money laundering (AML) and counter-terrorist financing (CTF) supervision under a Single Professional Services Supervisor (SPSS) marks one of the most consequential reforms for the compliance ecosystem in years. By transferring supervisory powers from 22 professional-body supervisors covering lawyers, accountants, and trust or company service providers to the Financial Conduct Authority (FCA), the reform aims to eliminate fragmentation and bring consistent, risk-based oversight to around 60,000 professional-services firms.
For AML advisory firms, consulting boutiques, training specialists, and solution providers, this consolidation represents a moment of opportunity rather than disruption. The transition to FCA supervision will amplify demand for both expert guidance and technology-enabled compliance tools. It creates a unified, predictable market where smaller players can scale faster, differentiate more clearly, and deliver measurable value across professional-services sectors, preparing to meet stricter FCA expectations.
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The new supervisory model and why it matters
The FCA’s forthcoming role as the single supervisor for professional-services firms replaces a fragmented landscape that relied on over 20 professional bodies with different interpretations of AML rules. Under the new regime, legal, accounting, and trust or company service providers will be subject to consistent, risk-based oversight under the Money Laundering Regulations.
This is a major shift with operational and cultural implications. The FCA will focus on the effectiveness of controls rather than their mere existence, emphasising continuous monitoring, demonstrable outcomes, and senior management accountability. For professional-services firms accustomed to self-regulated structures, the transition represents both an operational challenge and an education process.
That is precisely where AML advisory, consulting, training firms, and solution providers come into play. As new supervisory expectations emerge, regulated firms will need expert help and scalable systems to adapt, comply, and thrive under the FCA’s standards. The alignment of legal and accountancy sectors under one regulator also brings a unified market opportunity for solution vendors and advisers that had previously navigated 22 different supervisory frameworks.
Surge in demand for advisory and compliance solutions
The immediate impact of the reform will be a steep increase in demand for readiness support, systems modernization, and compliance training. Professional-services firms will seek expert partners to translate FCA expectations into actionable programs and systems.
Advisory and consulting firms can expect a surge of work related to AML framework redesigns, governance overhauls, control-effectiveness testing, and internal audit readiness. FCA supervision is known for its emphasis on practical implementation, requiring evidence of risk assessments, transaction monitoring adequacy, and training effectiveness. This will drive demand for external consultants to conduct reviews and simulations that mirror FCA inspection processes.
At the same time, AML solution providers are positioned to benefit from firms seeking automation, digital documentation, and monitoring technologies that align with the FCA’s outcome-based approach. Legal and accounting firms, historically slow adopters of RegTech, will face pressure to adopt digital client onboarding tools, ongoing screening, transaction monitoring, and case-management platforms that can produce traceable audit evidence.
The consolidation under the FCA therefore creates a dual demand wave, advisory firms providing strategic readiness and process alignment, and RegTech vendors offering technology that supports continuous monitoring, data quality, and risk analysis.
Market clarity and unified opportunity for small firms
Previously, advisory firms and solution providers had to tailor their services to the expectations of each professional body. This limited scalability and complicated product design. The new single-supervisor model eliminates that complexity, creating a national compliance baseline for all professional-services firms.
This new clarity enables smaller AML firms to market standardized offerings across a larger addressable client base. Advisory firms can develop FCA-readiness frameworks or “FCA supervision transition” packages that apply uniformly across sectors. Meanwhile, AML solution providers can design modules specifically aligned to FCA expectations on customer due diligence, beneficial ownership verification, and control effectiveness, knowing these will apply across the entire professional-services segment.
Unified oversight also opens up possibilities for partnerships. Small consulting firms can collaborate with RegTech vendors to deliver blended services, combining advisory expertise with data automation and monitoring platforms. Such partnerships are particularly attractive to smaller law or accountancy firms that lack in-house compliance infrastructure but now must meet higher supervisory standards.
For example, an AML advisory firm could deliver gap assessments and policy rewrites while integrating a third-party platform for client screening or transaction monitoring. Together, they create a turnkey compliance solution that smaller professional firms will need to demonstrate readiness to the FCA.
Rising expectations drive innovation and new business models
The FCA’s culture of supervision will elevate the market’s overall expectations for demonstrable compliance. Firms will no longer be able to rely on procedural checklists, they will need to prove effectiveness through measurable results.
This evolution benefits solution providers that can deliver dynamic monitoring, analytics, and reporting tools tailored to the professional-services sector. Platforms offering automated CDD workflows, intelligent document capture, sanctions screening, and AI-driven anomaly detection will see higher adoption rates. The FCA’s focus on data-driven supervision naturally rewards firms that can capture, analyze, and report compliance performance using verifiable evidence.
Small advisory firms can also capitalize on this by packaging services around technology deployment, offering implementation support, user training, data validation, and control integration. Training providers will find opportunities to develop hybrid courses combining human judgment, risk understanding, and system proficiency.
The reform also encourages innovation in the pricing and delivery of compliance services. Instead of one-off audits or training sessions, smaller firms can build subscription models offering continuous monitoring support, periodic control testing, and adaptive AML frameworks. Solution vendors can follow a similar path, offering scalable, tiered subscriptions tailored to firm size and risk category.
This convergence between advisory expertise and digital infrastructure signals a new era where compliance becomes both service and system, driven by data, sustained by automation, and validated by evidence.
Strategic opportunities for collaboration and ecosystem growth
The SPSS reform reshapes not only compliance expectations but also the ecosystem of firms serving regulated entities. Smaller firms, once limited by resource constraints, can now integrate technology partnerships to deliver full-spectrum services.
Key advantages include:
1. A unified client market – With 22 supervisory bodies consolidated, the client base for AML advisory and solution firms becomes clearer and easier to target. This creates economies of scale for sales, marketing, and product development.
2. Demand for hybrid compliance solutions – The FCA’s supervision style encourages integrated approaches combining advisory, training, and technology. Firms offering hybrid services, policy, training, and automated risk management, gain competitive advantage.
3. First-mover leverage – Early adopters that develop FCA-aligned solutions or transition programs will be best placed to secure contracts during the migration period. Advisory firms that combine expertise with automation tools will win more repeat engagements.
4. Partnership expansion – The reform encourages collaboration between RegTech vendors, audit consultancies, and AML trainers. By pooling capabilities, they can deliver end-to-end compliance transformation, an increasingly attractive proposition for firms seeking turnkey readiness.
5. Growth through credibility – The FCA’s reputation as a rigorous supervisor enhances the perceived value of compliance excellence. Advisory firms and vendors associated with FCA readiness or alignment gain credibility, which can translate into cross-sector expansion and exportable expertise.
For RegTech innovators, the reform also unlocks new verticals. The professional-services sector has traditionally lagged behind financial institutions in automation, but under FCA supervision, it will need to catch up. This will lead to higher investment in compliance systems, data integration, and AI-driven monitoring. Solution providers offering simplified, modular, and affordable tools will find fertile ground for expansion.
A costly evolution for non-bank institutions
Success under the new AML regime will depend on timing and adaptability. The legislative process and transition plan will take several years, but preparation has already begun.
Small firms can act now by:
- Developing FCA-aligned frameworks, offering advisory packages and compliance software pre-configured for FCA expectations.
- Building training ecosystems, creating courses and e-learning that reflect the FCA’s focus on effectiveness and outcome-based compliance.
- Partnering strategically, forming alliances between advisory firms, auditors, and RegTech platforms to deliver full-service solutions.
- Focusing on scalability, offering modular, subscription-based services or software that can scale with clients’ size and risk level.
- Demonstrating measurable impact, using data analytics, dashboards, or audit reports to show how their services or tools improve AML effectiveness.
Those who adapt early will not only benefit from the surge in demand during the transition but also secure recurring relationships once the FCA regime is fully operational. Advisory and solution firms that position themselves as long-term partners rather than one-time consultants will find steady growth.
Ultimately, the reform brings professional-services firms into the same high-standard environment long experienced by financial institutions. For the ecosystem of AML advisers, consultants, trainers, and solution providers, this alignment means more opportunity, deeper collaboration, and a stronger, more professionalised market for compliance excellence. However, whether referring to consulting firms or solution providers, this evolution will likely come at a cost for non-bank institutions, many of which will have to invest heavily in technology, staff training, and process restructuring to meet the FCA’s higher bar.
Related Links
- Reform of the Anti-Money Laundering and Counter-Terrorism Financing Supervision Regime (gov.uk)
- The UK Anti-Money Laundering Supervisory Regime (Law Society)
- AML Supervision to be Consolidated Under FCA (STEP)
- FCA to Become UK’s Sole AML/CTF Supervisor for Professional Services Firms (MoFo Insight)
- HM Treasury Consultation Response on AML Supervision Reform (gov.uk)
Other FinCrime Articles About FCA Gaining Supervisory Power Over 22 Professional Bodies
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