The FCA predicts that thanks to recommendations from the Financial Advice Market Review (FAMR), which is published today, millions of people could have improved access to financial advice.
One of the main FAMR recommendations is that the regulator and Government needs to intervene to ensure that both consumers and the industry benefit from new and cost-effective ways of delivering high quality advice and guidance.
The main areas of concern which need to be addressed, outlines the review, is the affordability and accessibility of financial advice and guidance; what’s known as the ‘advice gap.’
The FAMR recommendations include suggestions as to how people should engage with advisors and seek guidance; changes as to the definitions of financial advice; and, the need for a new advice new framework.
The review was co-chaired by Charles Roxburgh, Director General, Financial Services at HM Treasury and Tracey McDermott, acting Chief Executive of the FCA.
McDermott said: “This review has taken place against the backdrop of social and demographic changes which have led to an increasing need for individuals to take more responsibility for their own financial future. But we know that people often find it difficult to engage with financial matters and we need to make it easier for them to do so.
“The package of reforms we have laid out today will help increase both the accessibility and affordability of the advice and guidance to ensure that consumers get the help they really need when they really need it.”
Roxburgh said: “At a time when more and more people are seeking financial advice and guidance, we have set out how we can deliver a vibrant financial advice market that works in the interest of all consumers. Our recommendations will increase the amount of affordable, high quality financial advice that is widely available so it’s easier for people to access it at every stage of their lives.”