FCA accepts nine firms into advice unit


Nine out of 19 firms that applied to work with the FCA’s robo-advice unit have been successful, the regulator announced today.

According to the regulator, eight of the nine firms are established financial services firms that want to bring robo-advice to the market at scale.

Speaking at the BBA fintech banking conference today FCA strategy and competition executive director Christopher Woolard says: “Firms who were not successful have received feedback to help them understand why they did not meet our eligibility criteria, and have the option to reapply when we open our next cohort.

“The nine successful firms have begun the process of engaging with the advice unit, who will seek to provide regulatory feedback on the automated advice models they are developing.”

True Potential is one of the nine successful firms.

The advice unit was set up after the Financial Advice Market Review and opened for applications in May.

The regulator says it will publish lessons from the advice unit on its website from early 2017.

Woolard also gave an update on the regulatory sandbox, which opened for its first round of applications in May.

Of the 69 applications, the FCA has accepted 24 to develop for testing.

Three of the accepted applications covered advice and risk profiling, four came from retail banking, four from insurance firms, three related to IPOs, seven from payment firms, and one each for digital identity, disclosure and the mortgage sector.

The sandbox will open for a second round of applications in November.