The FCA has said that its flagship review of the financial advice market last year is on track to boost access to advice after the pension freedoms moved the market on from the RDR.
In a document released today responding to questions sent in before its annual public meeting but it did not have time to respond to on the day, the FCA set out its stance on whether its strategy was building trust in advice and showing that it was good value for money compared to other ways consumers can get information.
The FCA noted that the RDR “has helped to raise standards in the industry and over time should help to build trust in financial advisers”.
In particular, it cited fee transparency and the removal of commissions as steps forward, and that the results of its recent suitability review, which showed that 93 per cent of advice cases were suitable, demonstrated positive results.
The FCA writes: “A market where advisers aren’t driven by commission and are better qualified will provide a better quality of advice for consumers.”
However, it adds that “the landscape has shifted since RDR was developed”.
Its Financial Advice Market Review published last year, which set to tackle barriers to accessing and engaging with advice on pensions, retirement income or investments, is progressing as planned, it added.
The FCA writes: “The introduction of pension reforms has arguably made it even more important that consumers get the help they need with financial decisions. FAMR, which was launched in 2015 in conjunction with the Treasury, was aimed at making the financial advice market work better for consumers.
“All the FAMR recommendations are either already completed or on track for completion on schedule.”