The FCA has updated its terms of reference for the Financial Advice Market Review. FAMR was launched in August 2015 to examine how financial advice could work better for consumers. This includes a review of whether a longstop period is required after which the Financial Ombudsman Service will no longer consider a complaint. The review will consider if it may be possible to put in place an alternative approach to providing an appropriate level of protection for consumers which might also remove or reduce the burden of indefinite liability on individual firms. Options being considered include: not putting in place a longstop; introducing a single longstop; introducing varied limitation periods linked to the terms of products; enhanced professional indemnity insurance; and a compensation fund.
The update to the terms of reference provides information on the role of the Expert Advisory Panel. The Panel will operate independently and feed into the work of FAMR by:
- Providing background guidance to the FAMR team on the financial advice market.
- Responding to the public consultation.
- Providing ongoing support to those parts of the final recommendations that require stakeholder engagement.
The Panel will also help inform the FAMR’s recommendations through the following key outputs:
- Submitting a response to the Call for Input.
- Providing input and challenge to the FAMR team to help them test and refine the FAMR’s proposals, as well as providing on-going input on potential market impact.
- Providing advice on any implementation plan.
- Providing feedback on the FAMR’s outputs later in the process.