Moneyhub has submitted its response to the Financial Conduct Authority’s (FCA’s) Advice Guidance Boundary Review proposals (DP23/5).
The FCA’s proposals seek to bridge the ‘Advice Gap’ which has resulted in just 8% of adults* reportedly taking financial advice, leaving millions of people unsure where to get help with decisions about investments, savings, pensions or retirement planning.
Open Banking, Consumer Duty and Pensions Dashboards unlock consumers’ access to their data whilst putting customers’ needs at the heart of every financial services business. The Advice and Guidance Boundary Review can unite these regulatory initiatives so that, when it comes to managing their money, consumers can quickly and easily see both what they have and what to do next. The Data Protection and Information Bill will enable new Smart Data schemes and enable consumers to control their data like never before.
Sam Seaton, CEO of Moneyhub said:
“The FCA’s proposals are a game-changer which Moneyhub supports. We know consumers are missing out on potentially higher returns on their money because products are too complicated; They don’t know who to trust and advice is too expensive. Data is the answer for making advice accessible and implementing the new proposals.
“Targeted support, simplified guidance and holistic advice will co-exist using the same underlying ‘open data rails’ with an appropriate regulatory framework over the top.
“Matching consumers who have defined objectives, needs and characteristics with suitable products, using data sharing and automated ‘nudges’, is a logical extension of the use of consumers’ data. Our financial wellness platform is already helping consumers to become more aware and informed, combined with our technology firms can now deliver targeted support and simplified guidance to millions of consumers”.
Vaughan Jenkins, Managing Director of Partnerships at Moneyhub said:
“Moneyhub supports the Government and the FCA’s desire to build a framework which consumers can trust, recognising the complexity faced by consumers in making financial decisions. We believe that Open Finance, within the emerging Smart Data environment, will play a significant part in the realisation of these ambitions.
“We urge regulators and policymakers to orchestrate Open Finance, Consumer Duty and the Advice and Guidance Boundary Review into a single coherent and comprehensive agenda for sustainable change.
“Product manufacturers should be required to publish Open APIs that support customers’ access to their data and enable them to share data by their consent. This is the key to improving competition in favour of consumers”