Investment - Articles - FCA proposes ways to make financial advice more accessible


As part of its consumer investment strategy, the FCA has set out new proposals to improve people’s access to financial advice so they can invest with confidence.

 The proposals will create a separate, simplified financial advice regime, making it cheaper and easier for firms to advise consumers about certain mainstream investments within stocks and shares ISAs.

 The watchdog’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. While keeping a cash buffer is a sensible way of dealing with unexpected expenses, consumers who hold significant amounts of excess cash may be damaging their financial position, as inflation reduces the value of their savings.

 Strong regulation is essential for maintaining the UK’s high standards and protects consumers. However, the FCA recognises that adjusting the regime could help the advice market support mass-market consumers with simpler needs.

 The FCA’s proposed changes aim to prevent in-person financial advice from being too costly for many potential investors, as this can stop them from investing when it may be in their interest to do so.

 Sarah Pritchard, Executive Director of Markets at the FCA, said: '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.'

 The regulator is consulting 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  

Back to Index


Similar News to this Story

Fantasy football and investing more similar than you think
The end of the football season is upon us. Managers of fantasy football teams are reflecting on their performance and considering how they might impro
15th anniversary of the Bitcoin pizza worth now over USD1bn
Bitcoin pizza day marks the 15th anniversary of the first recorded real-world Bitcoin transaction. Laszlo Hanyecz spent 10,000 Bitcoins on two pizzas.
Charting the course for open finance
The FCA reflect on their recent Open Finance Sprint and map a future of financial services led by adaptability, inclusivity and a user–driven approach

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.