Harriett Baldwin delivered a speech at an industry forum on the Financial Advice Market Review (FAMR) on 13 April 2016. Ms Baldwin highlighted some of the issues facing the advice market, namely that it currently only serves wealthier customers, but those without significant wealth have an ‘advice gap.’
The FAMR published its final report last month and set out a new approach to financial advice through 28 recommendations. These include:
- Simplifying the definition of financial advice so that it reflects the EU definition of “personal recommendation.”
- Streamlining the advice regime to enable advisers to give affordable advice focussed on specific needs.
- The FCA providing regulatory support for high quality robo-advice propositions through a new ‘advice unit.’
- Replacing the Money Advice Service with a new, slimmed down money guidance body.
In order to ensure these reforms are embedded, a Financial Advice Working Group, drawing members from the FAMR Expert Advisory Panel and the FCA Consumer and Practitioner Panels, will take an active role in implementing some of the recommendations from the FAMR report.