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Andrew Bailey: Why advisers are key to the FCA’s mission

Bailey-Andrew-2012-700x450.jpgWithout a doubt 2018 will be a critical year for financial services. As I’ve said before, if you heroically put Brexit to one side, I think that the biggest issue facing society is the issue of long-term savings.

Advisers have a key role to play in ensuring that people make the right choices to both plan for and afford their retirement.

We have seen this recently in the case of the British Steel pension scheme. Making a decision about whether to transfer out of the pension is one that needs high quality advice.  I’d like to thank the advisers who brought examples of poor advice to our attention, allowing us to deal with this swiftly.

We rely on advisers as a key source of intelligence to understand what is happening in situations like these. We intend to publish our pension strategy next year. This will be an important piece of work setting out for the first time our assessment of the major issues in the sector as we consider the impact of the pension freedoms nearly three years on from their introduction.

2018 will also see the publication of the final report of our retirement outcomes review. We published our interim findings and remedies in the summer and we identified particular concerns about consumers who are buying drawdown products without taking advice. The remedies aim to improve competition in this market as well as potentially providing additional protections for consumers.

The impact that historically low interest rates have on long-term savings was something we were acutely aware of as we were carrying out the asset management market study. The changes that we will begin to see next year, subject to the results of our consultation, will improve competitiveness in the sector and ultimately help savers earn a return on their savings.

Clearly these are big issues facing the sector and I look forward to working with advisers throughout 2018 to tackle them.

Andrew Bailey is chief executive of the FCA

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Interesting that the CEO of the FCA has flagged up BSPS and the importance of intelligence. Clearly and issue that is taken very seriously at the FCA

  2. Fine words Mr Bailey, but the principal obstacle to providing affordable advice is the time it takes to document it and, on that, I’ve yet to see any clear initiative from the FCA.

  3. Is the issue of personal indebtedness not a greater issue than long term savings? And with less of the former, there would be more of the latter.

  4. Until it is made easier, shorter and much less cumbersome (for us and clients) to sell vanilla savings/pensions plans we won’t solve the issue. All the statements in the world about how advisers are needed or we’re working on the savings gap are just smoke filled coffee house cr@p. Until the FCA start to actually live and understand the real world of the average person, they cause more problems than they try to solve.

  5. Despite the above reservations Andrew Bailey does seem keen to engage with us.A listening FCA could be an opportunity to influence policy and should be seized upon by advisers.We also have Rory Percival on the outside now helping us to better understand regulatory thinking.It could have all looked quite promising for 2018 if it wasn’t for MIFIDII and GDPR!!

  6. Its hilarious …

    Funny how the FCA suddenly stood to attention and started marching quick time, after a MP started making waves over the BSPS transfers out…..

    Yeah, clearly a issue that has been taken very seriously, or is it a case of ” look out god’s just walked in, look busy” ?

    As bad as this is (BSPS) I do think there are other just as important (maybe more important) issues we are dealing with at this time…..80% of the FSCS claims are for unregulated products

    Or could it be our regulator feels this not such and issue as the industries clients are bailing them out to the tune of millions …..

    Yeah of course he is concerned over the saving gap and advisers are the answer, with such a high salary bill they need to protect their position …

    More money we earn more money they can take ….

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