The review, which follows the Retail Distribution Review that came into force 31 December 2012, will examine how financial advice could work better for consumers.
Following the government’s announcement of the Financial Advice Market Review on 3 August 2015, this consultation seeks views from all interested parties on how financial advice, considered in its broadest sense, could work better for consumers. The review starts consultations today and report ahead of Budget 2016.
Tracey McDermott, who became Acting CEO of the FCA on 12 September 2015 and will co-chair the review, commented: “Ensuring that people have the appropriate information and advice in order to make important financial decisions is a priority for the FCA. Changes in the rules around mortgages and the introduction of the new pension freedoms mean that more people than ever before are looking for or are in need of financial advice. The review is an opportunity to look at how the market is working right across the piece and has the potential to radically change the advice landscape to the benefit of both firms and consumers.”
In particular, the FCA would be interested hearing views about:
– the extent and causes of the advice gap for those people who do not have significant wealth or income
– the regulatory or other barriers firms may face in giving advice and how to overcome them
– how to give firms the regulatory clarity and create the right environment for them to innovate and grow
– the opportunities and challenges presented by new and emerging technologies to provide cost-effective, efficient and user-friendly advice services, and
– how to encourage a healthy demand side for financial advice, including addressing barriers which put consumers off seeking advice