Advisers do not need to wait for the advice guidance boundary review to conclude to make improvements, according to Sarah Pritchard, executive director of markets.
Speaking at a press conference for the FCA’s annual public meeting today (September 26), Pritchard was asked by FT Adviser what further work the regulator was doing with the advice community to ensure the measures set out in the review were effectively implemented.
Pritchard said the advice guidance work would take some time to conclude but added: “We don't need to wait for that reform to conclude before we're able to make some improvements, specifically around firms that are concerned about crossing the advice guidance boundary as it currently stands.
“Just in August last year, we gave some extra, quite practical guidance to help encourage firms to get up to the current boundary, to give them greater comfort around how to give advice without that, or give guidance without that crossing into personal recommendation.”
She also highlighted some firms were using digital sandboxes to test new propositions and encouraged other firms to do the same because “innovation in that space would help support the reforms”.
FT Adviser also asked what work the FCA was doing with providers of workplace schemes to put in place appropriate nudges.
Pritchard responded that the aim of the proposals was to make sure there was a “continuum” of help and guidance, including regulated advice but it was “critical” the end result was something “commercially viable”.
“We had some feedback in relation to our core investment advice proposal set out a year or so ago where firms were interested, but it wasn't a commercially viable proposition. So that's exactly why we're working with industry groups carrying out consumer research looking at some of the best practices and learnings in the pension space too,” she added.
During the main annual public meeting, Pritchard was asked by a member of the public whether she had a timeline of when the proposals may be implemented.
She said the public could expect the regulator to set out its direction of travel on the proposals “soon” but highlighted that “inevitably” legislation would be needed alongside the regulation when implemented,
“We do want to see financial advice and the financial advice market thrive. So our strategic ambition of making sure that people have access to the help and guidance they need, at the cost that they can afford, at the time that they need, will clearly only be met if there is good financial advice that is being delivered in the market, that financial advice is sustainable and that there are other forms of regulatory offerings soon,” she added.
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