Advice review

The Financial Conduct Authority (FCA) has launched a call for input asking for feedback on its proposed approach to reviewing the Retail Distribution Review (RDR) which examined investment advice and the Financial Advice Market Review (FAMR).

The FCA’s review will consider whether these initiatives have been successful in achieving their objectives. The review will look at what consumers want from the market and how the market works to deliver this. It will also consider how new market trends and developments might affect the future development of advice and guidance services.

The Regulator highlighted that millions of people look for help and support in making financial decisions every year, with the aim of the RDR and FAMR to help the market develop the right advice or guidance and service to help consumers make the right decisions. According to the FCA Consumers and the market are changing rapidly, as technology, employment patterns and inter-generational challenges change the way consumers interact with financial services. As well as looking at how the market has evolved since RDR and FAMR, the FCA believe its work needs to look ahead to see how they ensure that this important sector works well in the future. Their goal is for the market to deliver a range of good quality, affordable advice and guidance services that meet changing consumer needs.

The FCA is seeking initial feedback to the Call for Input by the 3 June 2019 and will collect further data through consumer research and surveying a sample of firms. It intends to publish its final report in 2020.