Much like in Australia, the UK’s financial watchdog, the FCA, has set out new proposals to make it cheaper and easier for firms to advise consumers — proposals that foresee the creation of a simplified regime alongside the existing regulated space.
In a statement last week, the watchdog said that while “strong regulation” is essential for maintaining the UK’s high standards, it had recognised that “adjusting the regime” could help the advice market support mass-market consumers with simpler needs.
The FCA’s ultimate aim, it said, is to prevent in-person financial advice from being too costly for many potential investors.
“’Now more than ever, people across the UK should have access to useful and affordable financial products and services which can improve their quality of life and support the economy,” said Sarah Pritchard, executive director of markets at the FCA.
The regulator is currently consulting on, among other things, making the qualification requirements for the new regime more proportionate so that delivering simplified advice is less costly for the firm.
Furthermore, the FCA has suggested that advice fees be paid in instalments so that customers are not burdened by large upfront bills.
The proposed changes are mostly based on a recent survey by the FCA, which revealed that some 4.2 million people in the UK held more than £10,000 ($18,000) in cash and were open to investing some of it.
The regulator noted that while keeping a cash buffer is sensible, “consumers who hold significant amounts of excess cash may be damaging their financial position”.
“These proposals are part of our work to deliver a consumer investment market where people can readily access support and firms aren’t deterred from providing it,” Ms Pritchard concluded.
What irks me is governments on both sides have relied on advisers to “sell, promote and explain” their constant changes to the superannuation system to mum and dad Australians for decades and now that the size of the super pool has reached critical mass they want to remove, disparage and prosecute those that helped build it. Years of hard slog, education and personal risk as we build our own small businesses has been rewarded with a slash and burn approach for political point scoring at the expense of Australians who have paid for and appreciated the advice they have received and can now no longer afford or access.