The review was co-chaired by Charles Roxburgh, director general, Financial Services at HM Treasury and Tracey McDermott, acting chief executive of the FCA.
McDermott said: “The package of reforms we have laid out today will help increase both the accessibility and affordability of advice and guidance to ensure consumers get the help they need when they really need it.”
Treasury financial services director general Charles Roxburgh said: “At a time when more and more people are seeking financial advice and guidance, we have set out how we can deliver a vibrant financial advice market that works in the interest of all consumers.”
Industry reaction
In early industry reaction, Tom McPhail, head of retirement policy at Hargreaves Lansdown said the FCA appeared to have done an excellent job of deconstructing the myriad ways in which the investment industry has become unable to serve all its potential customers effectively.
“The most critical proposal is to simplify and clarify the boundary between advice and guidance; it should allow firms more latitude to deliver useful guidance without having to charge an advisory fee or worry about inadvertently straying into giving personalised advice.”
The development of clearer, simpler engagement, through the dashboard, the Pension Passport, rules of thumb and with shorter suitability reports, would all help to reinvigorate consumers’ experience of dealing with the industry, he said.
Mc Phail added: “We’re less convinced about extending the development process for advisers and the notion of ‘streamlined’ advice. Where regulated advice is given it should adhere to high standards; there is a risk that these proposals could undermine this extremely important principle and allow poor practices to creep back into the industry.
“The proposals to improve the transparency of FOS rulings and decision making should give firms greater clarity and comfort and reduce the risk of unexpected judgements being made against them in the future.”
