The consultation will look at the gaps between the financial advice consumers want, and the financial advice they can access and afford.
It will also explore how these advice gaps can be closed, including the role technology – such as so-called ‘robo-advisers’ – will play in improving access to financial advice.
On 3 August, the FCA announced plans to launch the Financial Advice Market Review, which aims to examine issues preventing consumers from seeking financial advice, and the regulatory barriers facing UK advice firms.
It will cover the full scope of retail products in the financial market, including pensions, savings, mortgages, and insurance.
The consultation will be open until 22 December, and a final report will be published ahead of next year’s Budget.
Aspirations
“Helping hard-working people achieve their aspirations at every stage of their lives is at the heart of our long-term plan,” said the economic secretary to the Treasury Harriett Baldwin.
“A key part of that is making sure that people can access high-quality, affordable, tailored advice and guidance to help them make informed financial decisions.
“That’s why we’re exploring what more can be done to make sure consumers can access high-quality and affordable advice so they can make informed decisions with their hard-earned money.”
Acting chief executive of the FCA Tracey McDermott said the review is a chance for the FCA, the government, the industry and customers to work together to ensure the advice market meets the needs of consumers.
The consultation will examine the industry broadly before narrowing down to those areas where the ‘advice gap’ is most acute.
Binary proposition
Tom McPhail, head of retirement policy at Hargreaves Lansdown, said: “In regulatory terms, financial advice has become a binary proposition; it has to be either full, personalised advice, which is too costly for many people, or not exist at all.
“There is no middle ground which is often what people want and need. Many consumers just want a bit of help, and we believe policymakers should be focusing on this ‘third way’.”
