2025–2026 Financial Services Outlook: 5 Trends Advisors and Firms Must Prepare For

As we look ahead to the close of 2025 and the onset of 2026, financial professionals are facing a more complex operating environment than ever before. The convergence of evolving regulations, emerging technologies, demographic pressures, and rising consumer expectations continues to reshape the financial services and insurance landscape.

At CE Records, we’re closely tracking the trends shaping the future of financial advice and distribution. Here are five key developments we believe will significantly impact the industry by the end of 2025 and into 2026—and what firms must do now to prepare.

1. Elevated Oversight and Enforcement in the Insurance Sector

By 2025, the Financial Services Regulatory Authority of Ontario (FSRA) and other provincial regulators are expected to have fully implemented enhanced oversight over life insurance distribution. This includes:

• a. Active audits of MGAs’ agent onboarding and monitoring procedures
• b. Tighter enforcement of suitability documentation and ongoing supervision
• c. An expansion of consumer protection frameworks to reflect digital interactions

What’s coming in 2026?
We expect increased interprovincial standardization of CE and licensing requirements, particularly for agents operating digitally or across jurisdictions.

Action point: MGAs and carriers must treat compliance tracking as a strategic capability, not a back-office function. Credential verification platforms, such as CE Records, will become essential infrastructure.

2. Market Consolidation and AI-Led Operational Restructuring

The cost of regulatory compliance, combined with increased customer service expectations and the rise of generative AI tools, is accelerating consolidation in the insurance and wealth sectors.

By 2026, we expect:

• a. Fewer small independent MGAs
• b. Partnerships or acquisitions involving fintechs and traditional firms
• c. Integration of AI tools into compliance, risk profiling, and prospecting workflows

What this means:
Smaller firms must either scale up or specialize. Those that fail to modernize their operations, invest in agent support, and implement tech-assisted workflows will struggle to compete.

3. Widening Talent Gap and the Rise of Hybrid Advisor Roles

The average age of advisors continues to rise, with 35% expected to retire or exit the industry by 2028. Meanwhile, Gen Z professionals expect flexible work arrangements, digital tools, and a strong alignment with purpose.

Emerging trend for 2025–2026:
The role of the advisor is evolving into a hybrid function—part planner, part coach, part behavioural guide.

Advisors who succeed in this new landscape will possess:

• a. Emotional intelligence
• b. Digital fluency
• c. Deep regulatory and product knowledge
• d. Continuous learning habits

Key strategy: Firms should focus not only on recruitment but also on onboarding and mentoring, pairing new advisors with robust CE support and credential transparency.

4. Value Creation Through Learning Ecosystems

With margins tightening, firms are shifting focus from product margins to advisor enablement. In 2025 and 2026, the most successful MGAs and dealers will be those that:

• a. Create scalable learning systems tailored to advisor specialties
• b. Provided real-time CE tracking and personalized education pathways
• c. Embed education directly into CRM and planning tools

The future of growth lies in platform differentiation, where training, compliance, and productivity converge.

Tip: Investing in modular, role-based learning infrastructure not only boosts productivity but is increasingly a retention and recruitment asset.

5. Digital Footprint Risk and Credential Integrity

Advisors’ visibility on digital platforms will continue to rise, but so will regulatory scrutiny over misrepresentation.

With the rise of social selling and digital prospecting, regulators are responding to:

• a. Inflated or unverified credentials on LinkedIn, TikTok, and YouTube
• b. Use of titles (e.g., “retirement specialist”) without appropriate licensing
• c. Conflicts between public claims and CE status

Expect stricter enforcement and audits in 2025–2026, particularly as consumers increasingly rely on online profiles for advisor selection.

Solution:
Firms need centralized CE compliance dashboards, automated alerts, and tools that empower advisors to display verified credentials, reducing risk and reinforcing trust.

Navigating the Future with Confidence

As the industry evolves, staying ahead means more than meeting minimum requirements. It demands:

• a. A proactive approach to compliance
• b. Investment in advisor learning and credential support
• c. Integrated platforms for tracking and managing CE and licensing
• d. Strategic leadership that treats education as an asset, not an obligation

Those who adopt this mindset will be positioned not just to survive, but to lead.