Streamlining Financial Advice – The UK proposes to simplify financial advice rules to allow banks, insurers and investment firms to provide information to less wealthy customers without complying with strict safeguards that lead to higher fees. ing.

The Government has announced that it will review and clarify the ‘regulatory boundaries‘ between formal financial advice, which is highly regulated and therefore more expensive, and cheaper forms of information and support.

Streamlining Financial Advice
Streamlining Financial Advice

“These proposals aim to create a regulatory regime where a range of commercially viable high-quality support models exists and where consumers have better access to support.” The FCA said in a statement on Friday.

Streamlining Financial Advice Following a series of mis-selling scandals dating back decades, regulators are concerned with ensuring that a wider range of people receive financial information. Just 8% of UK consumers received comprehensive financial advice last year.

“The gap between comprehensive financial advice that is out of reach for many people and advice that is freely accessible but not personalized to consumers is too wide,” British Finance Minister Bim Afolami said in a statement. Stated.

We need a “middle ground” that is affordable and accessible, he says.

Streamlining Financial Advice The FCA and Treasury have proposed further clarity on when firms can provide support to customers without it being considered regulated financial advice.

It is also proposed to allow businesses to provide tailored support to groups of people in similar situations.

There will also be new forms of simplified advice that make it easier for businesses to provide affordable personal recommendations to their customers with less investment.

“These bold proposals are exactly what we need to help our clients achieve positive outcomes,” said Philip Deeks, Director of Regulatory Insights Center at KPMG UK .

“It also provides very welcome further clarity on how businesses can be encouraged and guided to make informed decisions and not rely too much on advice.” said Deeks.
PIMFA, the industry body for financial advisers, said the proposals would help ensure people had access to targeted financial advice.