FCA chairman John Griffith-Jones has argued the advice gap is one of the biggest challenges the financial services industry faces.
Speaking at the regulator’s annual public meeting in London today, Griffith-Jones outlined a number of “significant long-term challenges in the sector”.
These include over indebtedness, the pace of change in technology, cyber exposure and the “continued lack of competition in some areas of the industry”.
He also noted the “so called advice gap, particularly as it relates to pensions”.
He said: “These and other key risks will stay with us for the foreseeable future, possibly forever, as will the need for us to intervene when we see consumers suffering harm.”
Griffith-Jones also discussed how the cost of regulation needs to be proportionate.
He said: “Regulation is not cost-free. It is not cost-free for firms, and of course it is not free for customers who end up bearing it in price.
“Our responsibility is to regulate efficiently in a way that is cost-effective for the public.”