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FCA: We want your solutions to RDR advice gap concerns

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.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. It’s all very well CLAIMING to want (us to put forward) our solutions, but it might be fractionally more encouraging if the FSA were to add unequivocally that not only is it receptive to our suggestions but that it will actually listen to and publish them all in open forum for all to see and to debate. Without those two assurances, can we have any confidence that anything will change? Talking the talk is one thing. Walking the walk is quite another.

    So here’s my suggestion ~ streamline the advice process to just four foundation stones: Proposition, Costs, Risks and Tax. Cut out all the War & Peace life planning crap that the networks are imposing on their members to document satisfactorily even the simplest of transactions and which is of no interest or relevance to 99% of those in need of our services.

    It’s tempting to surmise that once Martin Wheatley had had a chance to assess his legacy, he called together his lieutenants and told them: Listen, we seem to have inherited here the most God-almighty frock-up. What are we going to do to sort it out?

    Tracey McDermott: Well, you could declare the FCA to be a very different animal from its predecessor, I could announce that we don’t want to burden small IFA’s with compliance and we could pretend to take a fresh look at the GABRIEL Returns.

    And so it goes…..

  2. Stephen Underwood 17th October 2013 at 4:38 pm

    It would be really useful if it was easier to offer your suggestions to the FCA and then knowing that your suggestions would be taken seriously and acted upon. Who do we write to? Can we do it online? What will be the process for delivering the findings. Will the FCA agree to act on the popular ideas? If no one is prepared to listen and then act then what is the point? It’s a bit like asking the wife “What’s the matter?” and then plugging in your headphones to listen to music before she has said anything.

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