FCA opens consultation on broadening consumer access to financial advice..

The long-stop would limit the amount of time clients can complain about financial advice, meaning advisers can be held liable for giving unsuitable advice to clients many years prior to the claim being made.

The review aims to improve the availability of advice to people, particularly those who may struggle to access advice because they do not have significant wealth or income. It involves automating most of the delivery of information about financial product selection to consumers online.

In a FCA response, published yesterday, to a Treasury Committee enquiry into the so-called “closed-book blunder”, when a media briefing led to incorrect reports that the FCA would investigate closed-book life and pension policies dating back to the 1970s, the regulator confirmed that either an internal or an external board review would take place every year to ensure accountability.

Tobin Ashby, legal director in the insurance team at Pinsent Masons, said what was exciting about the review was the involvement of both the regulator and HM Treasury, opening the door to potential change in the United Kingdom legislation that appeared to hamper other reviews. “Many consumers just want a bit of help, and we believe policymakers should be focusing on this “third way”.

Are there gaps between the financial advice that consumers want, and the financial advice that they can access and afford?

TCF is a set of principles developed by the FCA to encourage good behaviour towards consumers.

Tracey McDermott, acting CEO at the FCA said: “The financial decisions people make can have long reaching effects”.

The initial evidence gathering will have a broad scope before narrowing down to consider those areas where the advice gap may be most acute.

“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, whether that is saving for their first home, taking out a mortgage, buying a auto, or saving and investing for the future”.

The review was first announced in August and the consultation will run to 22 December.

There will also be a separate consultation on the role of publicly-funded guidance, including Pension Wise and the Money Advice Service.