As part of its consumer investment strategy, the FCA has today set out new proposals designed to improve people’s access to financial advice.
The proposals will create a separate, simplified financial advice regime, which aim to make it cheaper and easier for firms to advise consumers about certain mainstream investments within stocks and shares ISAs.
The FCA's recent Financial Lives survey found 4.2 million people in the UK held more than £10,000 in cash and are open to investing some of it. The FCA is hoping that adjusting its regulation of financial advice could help the advice market support mass-market consumers with simpler needs and thus narrow the post-RDR advice gap.
Today's consultation paper (CP22/24) consults on:
- Streamlining the customer ‘fact find’ so advice is more straightforward for both firms and customers
- Limiting the range of investments within the new regime so the advice is easier to deliver and understand
- Making the qualification requirements for the new regime more proportionate so delivering the simplified advice is less costly for firms
- Allowing advice fees to be paid in instalments so customers aren’t burdened by large upfront bills
Comments are requested by 28 February 2023.
'Now more than ever, people across the UK should have access to useful and affordable financial products and services which can improve their quality of life and support the economy. These proposals are part of our work to deliver a consumer investment market where people can readily access support and firms aren’t deterred from providing it.'