The FCA says it is monitoring the post-RDR advice gap “extremely closely” and recognises industry concerns over its impact.
Speaking at the Wealth Management Association conference in London this week, FCA chairman John Griffith-Jones said he was looking to the industry to provide advice gap solutions.
He said: “Clearly there has been a concern of the impact even if the nature of wealth management revenue streams has been slightly less impacted than other areas of the industry. I would argue what we have now is very clearly an improvement over what we had before.
“Yes, there may be side effects or unintended consequences and over the coming months we at the FCA will monitor developments in the market extremely closely. In particular we are alert to the advice gap issue and actually very interested to see where you, as part of a very competitive market place, go for new solutions that might meet the advice gap customer needs.”
Griffith-Jones said the suitability of advice remains on the FCA’s radar after last year’s thematic review of wealth management and there is still room for improvement from advisers by improving documentation.
Last month FCA chief executive Martin Wheatley said he had “concerns” over the advice gap. The Treasury select committee is also considering an inquiry into its impact next year.
IFA Centre managing director Gill Cardy says: “It has taken a long time for the FCA to talk about the advice gap but many people warned advice would be harder to access. The FCA has not done enough to facilitate advice solutions such as simplified advice, focused advice or simple products.”