29 January 2026
The Professional Alternative (TPA), a leading provider of compliance training for law and accountancy firms, is urging firms to take early action following the Government’s announcement that the Financial Conduct Authority (FCA) will become the single supervisor for Anti-Money Laundering (AML) and counter-terrorism financing across the professional services sector.
The move, confirmed last month, represents a major shift in how compliance will be regulated across the legal and accountancy industries, which are currently overseen by bodies such as the Solicitors Regulation Authority (SRA) and the Institute of Chartered Accountants in England and Wales (ICAEW).
While the exact timetable will depend on the passage of new legislation, experts are already warning that the FCA’s approach to supervision is likely to be far tougher and more prescriptive than what many firms are used to.
Early feedback from compliance specialists who have previously worked in the FCA-regulated insurance sector and spoke with The Professional Alternative about this reform suggests that firms could face a steep learning curve.
“The FCA’s expectations around training, documentation and cultural accountability are far higher than anything the professional services sector has faced to date,” said Paul Fletcher, Managing Director at The Professional Alternative.
“Under this model, training isn’t just a policy requirement, it’s a much stricter regulatory expectation that every member of staff understands and can evidence.”
Firms that fail to meet the FCA’s standards in future could face substantial financial penalties, public censure and the reputational damage of being named and shamed.
“The FCA’s oversight will bring a new level of scrutiny that many firms simply aren’t prepared for at the moment,” added Paul.
“The worst thing firms can do now is wait for the formal transition before acting. This change will fundamentally reshape the compliance landscape for professional services in the UK.”
Under the FCA, firms will be expected to demonstrate active, ongoing compliance, including training across all levels, clear accountability structures and evidence of continuous improvement.
“For law and accountancy firms, this isn’t just about updating manuals or appointing a compliance officer. It’s about embedding a culture of awareness and responsibility across the entire organisation,” Paul explained.
Firms are being urged to start reviewing their AML and financial frameworks now, particularly their staff training and monitoring processes, to ensure they can adapt quickly once the FCA assumes its new role.
As The Professional Alternative warns, those who take early, proactive steps to align with FCA-style expectations will be best positioned to navigate the transition and protect their reputation.