I have to say I am disappointed that the FCA has said this, as surely they must realise they are the reason for the advice gap – along with all the other well-meaning legislation and rules.
Until we get somebody that stops and looks at the whole picture of financial services businesses and regulation it will be a race to the bottom, I fear, and to the demise of face-to-face advice except for the wealthy or financially savvy.
I personally would not risk my small business for the sake of simplified advice. There are too many retrospective ‘ifs’, ‘buts’ and ‘maybe’s’ as well as concerns about interpretation by the FOS and FSCS.
With my PI excess standing at £10k and any profit margin being small, for me this area is a disaster waiting to happen.
You only have to look at the fiasco of stakeholder pensions and the unfolding mess of auto-enrolment to see this being the next big mess to blame on us.