In a nutshell the FCA report seeks to address three main concerns as this extract details: 1. AFFORDABILITY We believe that the RDR has brought about a positive step change in the quality of advice available to those with larger amounts to invest. However, steps need to be taken to make the provision of advice and guidance to the mass market more cost-effective. We make a number of recommendations intended to allow firms to develop more streamlined services and engage with customers in a more effective way. These include a proposal that the FCA should set up a dedicated team to help firms developing mass-market automated advice models to bring these to market more quickly, and that HMT should consult on amending the definition of regulated advice.
SO WHAT DID WE CONCLUDE? We are convinced that financial advice is needed by the mass affluent, and even those with more simple financial needs, though more cost effective methods of distribution and advising must be designed and implemented. The FCA will publish their output from the review in the spring and will pave the way for the re-introduction of simplified advice methods, complemented by ‘roboadvice’, where technology will play an increasingly important role in the advice process.