PIMFA, the trade association representing wealth managers and financial advisers across the UK, has responded to the Financial Conduct Authority’s (FCA) Simplifying the Advice Rules consultation, published today.
PIMFA has previously called on the FCA to urgently address structural barriers preventing firms from making meaningful progress towards closing the UK’s financial advice gap. As part of its consultation, the FCA has outlined a number of changes to the simplified advice and ongoing advice services regimes.
Simon Harrington, Head of Public Affairs at PIMFA, says: “The FCA’s decision to clarify and update its requirements for firms delivering ongoing advice services is extremely welcome.
“Giving firms the flexibility to deliver periodic assessments in line with consumer needs will encourage firms to develop new, innovative propositions for different client needs. These proposals – and the accompanying guidance – should give firms the confidence they need to continue delivering high quality financial advice on an ongoing basis.
“While this represents meaningful progress, it is too early for us to judge how firms will respond to the proposals for Simplified Advice will be greeted as warmly. We continue to take the view that it will only be attractive to firms who can offer it in a way that is commercially viable – this means looking at adviser qualifications. We note the FCA’s clarification of its expectations for Trainees who have not yet fully qualified on this matter.
“We also note the FCA’s decision to look more closely at trail commission. In doing so, we welcome its intention to properly examine the impact on consumers and firms with these legacy arrangements. Whilst we note the FCA’s concern in this area, it is already the case that these arrangements will be subject to regular review by firms to ensure they continue to deliver value for money and good outcomes to consumers. We look forward to working closely with the FCA on this matter over the coming months.”
