Aegon has welcomed the FCA’s latest update on its review with the Treasury of the advice guidance boundary. It believes this could pave the way for a more personalised form of guidance to complement highly valuable advice services.
It has also welcomed pausing the previous proposals for a core investment advice regime which aimed to support individuals move excess cash into a stocks and shares ISA.
Steven Cameron, Pensions Director at Aegon said: “We welcome the latest update from the FCA which provides more detail on the direction of travel of the advice guidance boundary review it is undertaking with the Treasury. We particularly welcome the FCA acceptance that the solution to supporting customers make informed financial decisions will not be met by changes to regulated advice alone. Advisers provide hugely valuable support to millions of individuals each year, but particularly since the Retail Distribution Review there has been a persistent advice gap. The current regulatory regime, with very limited options alongside full regulated advice, has created an even wider ‘support gap’, which has been exacerbated by the cost of living crisis.
“It’s imperative that advice services continue to thrive. But to complement this, there could be major benefits if those regulated firms who want to, were permitted to offer a new more personalised guidance service. This might allow them to support currently unreachable client groups, getting them on the road to good ‘Consumer Duty’ outcomes. And once these clients begin to appreciate the benefits, they’re much more likely to return to the adviser for full advice when they need it.
“We also welcome the FCA pausing consideration of its core investment advice proposals. While the aims of extending support were right, the rules were very narrow in scope and focus. Furthermore, with interest rates continuing to climb, it may be less appropriate right now to be seeking to encourage cash savers to switch to stocks and shares ISAs for the first time.”
