B-Compliant News
SIMPLIFIED ADVICE DOESN’T GO FAR ENOUGH
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7 December 2022
The FCA’s proposed Core Investment Advice is unlikely to be of interest to many adviser firms due to its limitations.
If the regulator’s plans are implemented, those looking to participate would only be able to do so in the first year of investment and only up to the value of the ISA allowance of £20,000.
The FCA consultation on the Simplified Advice Regime closes at the end of February and it is expected core investment advice will be available from April 1 2024. We are urging firms to respond to the consultation, as we believe there will be little uptake in its current form.
B-Compliant director, Vicky Pearce, said: “Firms will not be required to offer simplified advice, but done properly, it could be of interest to many. The proposals are a move in the right direction and are certainly a step towards reducing consumer harm. However, the one-off and transactional nature of the service is unlikely to appeal to the majority of our client firms, particularly considering the additional regulatory burden it will place on them.”
The FCA announced last week that it wishes to open up the consumer investment market to those with cash savings who face challenges relating to costs. It is proposing to allow firms to provide clients with straightforward needs access to simplified advice on mainstream products within stocks and shares ISAs.
Vicky concluded: “In their current form, the proposals would see advisers having to conform to three respective, yet interconnected regulatory regimes. The principle of simplified advice is grounded in Consumer Duty, but if a client has sustainable investment objectives, there will also be a tie-in to the new Sustainable Disclosure proposals.”
To find out more about our assessment of the Simplified Advice Regime, telephone (0161) 521 8641 or email: info@b-compliant.co.uk