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FCA's guidance proposals welcome but will 'take time' say advisers

FCA's guidance proposals welcome but will 'take time' say advisers
Sarah Pritchard of the FCA talks at FT Adviser's flagship conference in London (Carmen Reichman/FT Adviser)

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The majority of advisers believe the Financial Conduct Authority's advice guidance boundary proposals are positive, although will take a long time to implement fully. 

This was one of the findings from a snapshot poll that took place at FT Adviser's flagship Financial Advice Forum in London this week (September 24). 

During the opening remarks, attendees were invited to participate in a poll, which asked: "How will the FCA's advice guidance boundary review proposals affect Britons?"

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Of those who were able to take part, 31 per cent said the proposals would be beneficial to millions of Britons, adding the recommendations should be brought in "as soon as possible".

A higher percentage of respondents - 53 per cent - believed the proposals were "okay" but were concerned the implementation could take a lot of time. 

Only 16 per cent felt the proposals would not help the wider UK population.

Slido graph from the FT Adviser Financial Advice Forum

Keith Richards, chief executive of the Consumer Duty Alliance, said: "The latest consultation on the advice boundary is a potential game-changer for a number of reasons.

"It may result in big financial services consumer brands entering the market under a different regime, to help millions of consumers select products to meet straightforward financial savings and protection objectives."

However, he said the big issue to tackle was not so much the advice gap, but what he would call the "financial engagement and knowledge gap".

Also at the conference, Sarah Pritchard, spoke of the FCA's progress with the advice-guidance boundary review.

She told delegates: "Clearly, legislation may be needed to create any new regime as well as regulation. That is why we are working jointly with the Treasury from the start, so that we can then move quickly through legislation and regulation once we have tested what will work in the market and for consumers."

Pritchard said there were three "challenging questions" at the heart of the advice guidance review: 

  • how the FCA builds in the appropriate consumer protections  
  • to what extent does the industry need prescriptive versus outcomes-based regulation  
  • balancing firms’ desire for certainty with the need for space to innovate   

She added: "We will continue to work closely with both industry and consumer groups as we develop our proposals."

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