View more on these topics

Aegon warns Budget guidance remit creates regulatory mismatch

Aegon has raised fears regulatory arbitrage could enable the Money Advice Service and The Pensions Advisory Service to go further than private sector providers on Budget guidance.

The FCA is consulting on delivery of the guidance guarantee and earlier this year separately published a paper setting out boundaries of non-advised sales, simplified advice and full advice.

Aegon head of regulatory strategy Steven Cameron says: “Looking at the two side by side it looks like some of what the guidance guarantee partners would be able to do would, if delivered by a regulated party, fall into the ‘advice’ category.”

The FCA’s paper on non-advised sales and simplified advice sets out a range of scenarios where information given to consumers could be considered a personal recommendation if it has been influenced by personal financial information taken from the individual.

Cameron says it may create a mismatch with the scope of the Budget guidance package: “For the guidance guarantee to work at all the guidance guarantee partners will need to collect quite a lot of information and signpost accordingly. At the very least we need complete clarity so that we have a coherent approach both for regulated firms and delivery partners. If we begin to have mis-matches the FCA may be storing up potential problems for the future.”

The firm this year launched its Retiready D2C investment platform with pension planning tools and a limited range of investment options.

Several other D2C platform providers go beyond pure execution only and provide some guidance. 


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm