FCA reveals plans to make financial advice more accessible
The Financial Conduct Authority (FCA) has released its new proposals on how to make financial advice more accessible to retail investors.
The regulator plans to create a” separate, simplified financial advice regime” which will make it cheaper and easier for customers to get advice on mainstream investing within stocks and shares ISAs.
It follows a recent FCA survey which found that 4.2 million Brits have more than £10,000 in cash and are open to investing at least some of it. The FCA has noted that excessive cash holdings can be eroded by inflation, whereas investing could yield better results for informed investors.
Read more: FCA to crack down on credit information market
The FCA aims to adjust the financial advice regime to support these customers as they make investment decisions.
“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,” said Sarah Pritchard, executive director of markets at the FCA.
“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.”
Read more: FCA warns of “factual inaccuracies” in Hartley wind-down communications
The FCA’s current proposals include streamlining the customer ‘fact find’ so that it is easier to find and understand financial advice.
The regulator also wishes to limit the range of investments within the new regime so the advice is easier to deliver and understand.
The FCA has also suggested making the qualification requirements for the new regime more proportionate so delivering the simplified advice is less costly for firms, and allowing advice fees to be paid in instalments so customers aren’t burdened by large upfront bills.
Read more: FCA chief defends new consumer duty