FCA begins review of financial advice market
The Financial Conduct Authority (FCA) has launched a call for input asking for feedback on its proposed approach to reviewing the Retail Distribution Review (RDR) and the Financial Advice Market Review (FAMR).
The RDR and the FAMR aim to improve consumer outcomes from financial advice and guidance. The FCA’s review will consider whether these initiatives have been successful in achieving these objectives.
The review will look at what consumers want from the market and how the market works to deliver this. It will also consider how new market trends and developments might affect the future development of advice and guidance services.
"Millions of people look for help and support in making financial decisions every year and the aim of the RDR and FAMR was to help the market develop the right advice or guidance service consumers need to make those decisions," Christopher Woolard, executive director of strategy and competition at the FCA said.
Consumers and the market are changing rapidly, as technology, employment patterns and inter-generational challenges change the way consumers interact with financial services.
"As well as looking at how the market has evolved since RDR and FAMR, it’s important that our work looks ahead to see how we ensure that this important sector works well in the future," Mr Woolard explained.
"We want the market to deliver a range of good quality, affordable advice and guidance services that meet consumer needs."
The FCA is seeking initial feedback to the call for input by the 3 June 2019. The FCA will hold several stakeholder events, and collect further data through consumer research and surveying a sample of firms.
It intends to publish its final report in 2020.