Financial Conduct Authority chief executive designate Martin Wheatley says he hopes simple products and simplified advice will bridge the advice gap for people with small pension pots after the RDR.
Speaking at an Age UK event in London last week, Wheatley said: “Charging for advice is there today, it is just hidden. It is right that in a model where charging is made more explicit, people with relatively low-value assets may not have access to the same advice they had in the past. What we are hoping to see is more simplified products that can be sold on a simplified advice or non-advised basis.”
A steering group set up by the Treasury to help develop simple products began work last month, led by former FSA director and former Lloyds Banking Group chief risk officer Carol Sergeant. The group will report by the end of July.