Feedback: Advice Guidance Boundary Review - Financial Conduct Authority | FCA

Most respondents agreed that our proposals are a positive step towards improving consumer outcomes and agreed with the proposals outlined in the paper.

The Financial Services Consumer Panel challenged us to realise the full ambition of this review and encouraged us to keep an open mind on what may be needed to achieve the strategic aims of the review – which are to help consumers access the support they need to make informed decisions.

There was concern too about the risks of developing new forms of regulated help, including the need to ensure people fully understood the support they were being offered and what protections would be provided.

A majority of respondents indicated that targeted support offered the best way of helping consumers at scale.

Stakeholders pointed out that targeted support would only be successful if consumers have confidence in it and if they understand what it is, and what protections it provides.

There would be risks not only to consumers if this service is not delivered well but also to the success or viability of targeted support as a new regulatory offering.

We received feedback focused on the scope of the regime, and the importance of delivering good outcomes for all savers and investors, including those who have characteristics of vulnerability. Some respondents emphasised the need for a joined-up approach with the wider regulatory family, the importance of the Consumer Duty to support implementation of any proposals with debate on the merits of detailed rules or an outcome-based regime. Others discussed the role of technology, including open banking, to support the proposals.

Respondents also saw a role for simplified advice but recognised that it may not meet the demands of the mass market.

Some respondents suggested that simplified advice was needed in conjunction with targeted support for those who cannot afford, or do not want, holistic advice but need additional help.

We have also heard feedback that targeted support could help with directing consumers to further sources of support including holistic advice.

Further clarifying the boundary

There was interest shown towards the proposal for the FCA to further clarify the boundary between regulated financial advice and unregulated guidance but recognition that on its own it is unlikely to resolve the support gap. However, some respondents indicated that they would welcome more examples of support they can give without undertaking financial advice.