UK Gov’t kick-starts consultation into accessibility of advice

Ninety per cent of those who have taken advice report that they were pleased or satisfied with the service, but overcoming the cost barrier and extending advice to a wider group will require careful consideration of issues such as the potential use of digital and industry business models. It will look at how these gaps can be closed, and at what role “robo-advice” has to play in improving access to information.

The suggestion is that automated robo-advice could allow people to make decisions without having to pay more for a dedicated financial adviser.

The consultation marks the first part of the Financial Advice Market Review, which is being conducted by the Financial Conduct Authority (FCA) in partnership with the finance ministry.

“The current FCA advice review is going to be quite far-reaching and there could potentially be a lot of change around how firms deal with smaller clients”, said Nigel Stockton, Bellpenny CEO.

Insurance expert Tobin Ashby of Pinsent Masons, the law firm behind Out-Law.com said: “The FAMR is a recognition of the continuing problem of obtaining – and providing – affordable advice or other help to so-called mass-market investors”.

But Dr Scott said if access to professional financial “advice”, as the public perceive it, is to be brought into the hands of the many, it must be with a guarantee of quality and protection.

What kind of financial advice do consumers want?

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

“Helping hard-working people achieve their aspirations at every stage of their lives is at the heart of our long term plan”.

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.

As part of the freedoms, people have access to a free, impartial guidance service called Pension Wise.

The consultation, which runs until 22 December, will not just cover advice that has a strict regulatory definition, such as full fact-finds on a person’s financial situation, but will also look at broader means of support and guidance on investment decisions.