The prod will scrutinize at how “advice gaps” sold in the market can be connected, and what task new “robo advice” technologies might’ve to create it simpler for certain people to connect to financial advice in a fashion that go with their ealier needs.
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Computer algorithms that offer financial advice will be studied as part of a review into the money advice sector.
Now not all consumers may be able to find the form of advice that they want on a need they have, at a price they are prepared to pay but, in the context of increasingly complex financial choices, the aspiration must be to maximise the number who are able to do so.
On Monday HM Treasury and the Financial Conduct Authority (FCA) will launch a joint consultation exploring what can be done to improve customers’ access to financial advice.
The review aims to improve the availability of advice to people, particularly those who may struggle to access advice because they do not have significant wealth or income.
In a FCA response, published yesterday, to a Treasury Committee enquiry into the so-called “closed-book blunder”, when a media briefing led to incorrect reports that the FCA would investigate closed-book life and pension policies dating back to the 1970s, the regulator confirmed that either an internal or an external board review would take place every year to ensure accountability.
It comes after the change in pension rules, which came into effect in April.
Are there gaps between the financial advice that consumers want, and the financial advice that they can access and afford?
The consultation, which runs until 22 December, will not just cover advice that has a strict regulatory definition, such as full fact-finds on a person’s financial situation, but will also look at broader means of support and guidance on investment decisions.
As part of the freedoms, people have access to a free, impartial guidance service called Pension Wise.
Tracey McDermott, acting CEO at the FCA said: ” It is important that the market provides accessible and affordable advice when people need it”.
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Harriett Baldwin, the economic secretary to the Treasury, has said people are more likely to seek advice on investments of £50,000 or more.
