Steven Cameron, Pensions Director at Aegon said: “Aegon had called on the FCA to focus on the potential for the ‘advice gap’ for defined benefit scheme members to be a key part of the review of RDR and FAMR. While the FCA has decided against this, we are pleased it has noted concerns raised through its call for input and we welcome the assurances given that these concerns will be fed into other projects. In its work on defined benefits, the FCA has rightly focussed on ensuring individuals who receive advice receive suitable advice. But attention also needs to be given to whether individuals may struggle to access advice in this key area, and if the supply of advice will reduce further as a result of regulatory interventions or increases in Financial Ombudsman Service compensation limits. We would welcome the FCA ensuring its drive to improve the quality of such advice does not inadvertently lead to a shrinkage in supply, which could be to the detriment of defined benefit members.”
On the FCA’s confirmation that it will focus on the regulatory perimeter between guidance and regulated advice, Cameron said:
“We welcome the focus the FCA will give within its RDR and FAMR evaluation to the boundary between guidance and advice. Most people would benefit from financial advice at certain points in their lives. But it’s also important to supplement this with guidance services for example through the workplace or for those with smaller amounts to invest.”
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