FSA chief executive Hector Sants says the regulator is keen to ensure the RDR does not prevent people from getting financial advice.
Sants (pictured) was questioned about the RDR’s impact on access to advice following a speech he gave at the Association of British Insurers’ biennial conference in London yesterday.
RGA product development actuary Greg Becker asked: “I support the RDR but can see an unintended consequence being that large sectors of the population stop being serviced by traditional IFAs. What is being done to ensure these people will have access to some form of advice or guidance, other than the work being done by the Money Advice Service and its financial health check?”
Sants replied he was glad to see support for the RDR’s core objective of creating a better financial services market.
He said: “As we have been designing the RDR process and our interventions in that area to develop a better marketplace we are very conscious of the point the question has raised, which is that we want to make sure we have not excluded people from advice that they were previously able to get.
“A key element of making sure that does not happen is the delivery of an effective simplified advice regime.”
Sants added the development of simplified advice should be a joint partnership between the regulator and the industry.
He said: “We have recently recognised that in order to play our full part in this partnership of delivering effective simplified advice that more help and more clarity from the regulatory perspective would be useful.
“We will be publishing further documents on how we see simplified advice working in the next few months, and I very much hope that will address those utterly understandable concerns.”