Mr Lacey added: "Kicking the can down the road isn’t good enough. Firms are declining to advise in this space, PI insurers are using it as an excuse to hike rates, and, worst of all, clients are not getting advice that could be of real benefit to them."
Keith Richards, chief executive of the Personal Finance Society, said: "The review was instigated by the government in recognition of an advice gap and the risk that it would continue to widen if not addressed, in particular for ‘hard working people wanting to do the right thing.’"
It was therefore disappointing, Mr Richards said, that the FCA would not be considering the impact of changes to the award limits for the Fos, including its impact on the professional indemnity market, as this "needs to be joined up rather than treated separately".
Mr Richards added: "The FAMR was supposed to identify ways to close the advice gap, including how to remove unnecessary regulatory barriers and cost.
"Post pension freedoms, the demand for face-to-face financial advice is greater than ever but changing the award limits for the Financial Ombudsman Service from £150,000 to £350,000 has increased the cost of regulated advice without considering the conflict with FAMR consumer objectives or a broader solution to both PII and FSCS."
rachel.addison@ft.com
