Therese Chambers, director of consumer investments at the FCA, has revealed more details of the advice/guidance review, including the fact it will be a joint enterprise between the FCA and the Treasury.
She shared the information during a speech at the TISA Financial Advice and Guidance Conference.
She said the review will cover both the accumulation and decumulation phases and will only exclude DB transfers and guaranteed minimum income products.
She added that in the ten years since RDR, a lot has changed, and regulations need to keep pace with the digital world, to make the most of opportunities and reduce the regulatory burden where there are adequate levels of consumer protection.
Chris Hill, chief executive of Hargreaves Lansdown, said: “Early details of the advice/guidance review offer a great deal of promise.
“We’re delighted to see it will be a joint enterprise between the FCA and the Treasury, which demonstrates real ambition in the scope of the review.
“It’s also excellent news that it will start with a blank sheet of paper, and look at designing the best possible approach from the ground up.”
The review will undertake in-depth engagement with firms, which he said is absolutely vital to ensure the final proposals enable organisations to support their clients in the best possible way, using their data and expertise to drive better client outcomes.
He said changes to the advice guidance boundary will allow greater personalisation of consumer communications, which in turn will increase engagement and drive better decision making and outcomes.
He added: “It’s also pleasing that the FCA recognises how crucial digital technology is to this process: how it has transformed financial services, and how it has the potential to radically improve the support provided to consumers.
We will have to wait for more detail of the timetable for the work, but the breadth and depth outlined today are hugely positive.”
