APFA Calls On FCA To Cut Volume of Disclosures

A leading adviser trade body has today called for the FCA to take steps to cut the volume of disclosures required if it wants to lessen the information overload on consumers.

The APFA has produced a paper, in response to the FCA Discussion Paper DP15/5 on Smarter Consumer Communications, which highlights the fact that “all rules are created equal” and welcomes the regulator’s suggestion that it develop an indication of priority in its proposed ‘layering’ approach.

Director General of APFA Chris Hannant said: “We believe it is the broader regulatory environment, including the huge number of rules, combined with fear of how complaints are assessed by the Ombudsman that gives rise to the lengthy paperwork clients receive.

“We look forward to working with the FCA, the advice community and others to improve consumer communications especially in terms of developing the FCA’s layering concept and how this may apply to suitability reports.

“However, to encourage advisers in practice to adopt new practices, it is important that they have confidence in the approach of the Financial Ombudsman in assessing complaints.”