Tracey McDermott, Acting Chief Executive of the FCA, delivered a speech on recommendations post the Financial Advice Market Review (FAMR), at the Westminster and City industry forum on 13 April 2016. In her speech, Ms McDermott highlighted the fact that advice is one of the FCA’s seven core priorities, as set out in its Business Plan published earlier this month, with a key initial focus on the new regulatory framework for advice.
Ms McDermott confirmed that the FCA, along with HM Treasury, has set itself milestones to deliver the FAMR objectives. In order to keep momentum, Ms McDermott confirmed that the Advice Unit, supporting the development of automated advice tools, will be open from May. This will be open to firms of all sizes. The FCA will initially provide feedback to firms on how their advice models can meet regulatory requirements and expectations. The FCA will publish a further statement in May to provide further details.
Ms McDermott also confirmed that the FCA is addressing FAMR’s recommendations on how to make the FSCS (Financial Services Compensation Scheme) levy more predictable for advisers and to design a levy that accurately reflects costs for the scheme. Further firm engagement will take place in the Summer and a consultation is planned for the Autumn.