IFA Centre managing director Gill Cardy is calling on FCA chief executive Martin Wheatley to act over his concerns about an advice gap and create a simplified regime.
Speaking at the Treasury select committee earlier this month, Wheatley said he had “concerns” over the mass withdrawal of bank advice after the RDR and an advice gap developing for lower earners.IFA Centre managing director Gill Cardy is calling on FCA chief executive Martin Wheatley to act over his concerns about an advice gap and create a simplified regime.
Wheatley said advisers have to do up to six hours work before advising clients and raised concerns about the advice available for those with portfolios worth less than £100,000.
Speaking at a recent Institute of Chartered Accountants for England and Wales wealth management conference in London, Cardy said the regulator needs to do more to help those on lower incomes.
She said: “There needs to be a mechanism where people who don’t need full advice get some advice cost-effectively without a six hour compliance framework just to help somebody with what may be very basic guidance about building their financial futures.
“Everything the FCA does assumes clients already come to us with everything sorted including assets, income, businesses and shareholdings.
“The system is predicated on sorting out someone who is already there but it needs a proper mechanism, potentially with light touch regulation, to get them on the way from say age 25 to 30 and get the assets. The advice focus is not right at the moment.”
Industry consultant Peter Williams, who has campaigned for simplified advice, says: “The FCA has to listen to the industry and have greater flexibility. It can definitely make it easier to do business which would help.”