FCA plans 'new form of simplified advice' in extensive review

investmentweek.co.uk:

The FCA noted that the proposals were high-level at this stage, not definitive and reflected early thinking. The regulator said they would evolve based on stakeholder feedback and further engagement.

Published today (8 December), one of the proposals is further clarifying when firms can give consumers support without giving regulated financial advice.

The ‘further clarifying the boundary' proposal intends to explore whether further guidance or simplifying existing guidance would help firms provide consumers with greater levels of support by giving them more confidence to operate closer to the boundary.

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Another is the ‘targeted support' proposal, allowing firms to provide support tailored to groups of people in similar circumstances and enable firms to broaden the support they can provide to consumers.

This could be offered without explicit charges, based on limited information, and would enable firms to suggest products or courses of action based on a target market the consumer has been identified as belonging to, rather than fully individualised support.

Finally, in its ‘simplified advice' proposal, the regulator has set a new form of simplified advice that makes it easier for firms to provide affordable personal recommendations to those with simpler needs and smaller sums to invest. 

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The FCA said today's advice/guidance boundary proposals are «an important step in examining how innovation could expand the market to new forms of advice and support, driving competition to better serve consumers, while maintaining consumer protections».

It added: «Following close engagement