Financial Conduct Authority Calls for Input on its Review of UK Financial Advice Market
05/01/2019The Financial Conduct Authority is seeking input on its evaluation of the Retail Distribution Review and Financial Advice Market Review, two initiatives introduced in 2006 and 2015, respectively, which aimed to enhance the outcomes for retail consumers from financial advice and guidance given by institutions. The evaluation has been launched in line with a commitment by the FCA to conduct a review of the initiatives in 2019. Responses should be submitted by June 3, 2019.
The Retail Distribution Review, introduced by the FCA's predecessor, the Financial Services Authority, made changes to the way in which investment products were distributed to retail customers in the U.K. Changes included requirements on manufacturers to take end-user requirements into account, raising minimum adviser qualifications, changing the way charges and services were disclosed to customers and banning the use of commission charged for financial advice. The Financial Advice Market Review focused on enhancing the financial advice market for consumers by making advice and guidance more accessible and affordable. It resulted in a series of recommendations, in accordance with which the FCA and HM Treasury developed a set of indicators to act as a benchmark for monitoring changes in the market over time.
The FCA has its own view on the scope of the evaluation, based on the evolution of the market since the initiatives were originally launched and concerns the FCA holds regarding conflicts of interest, the need to treat consumers fairly and the quality of communications in some parts of the market. The call for input represents an attempt to gather information from consumers, retail financial services firms and professional services businesses about the issues they feel should be considered. Alongside the evaluation, the FCA will conduct market research and take account of insights gained from other FCA activity to produce a set of findings which it aims to publish in 2020. The FCA also plans to hold a series of afternoon events across the U.K. between June 5 and July 11, 2019 for representatives from regulated firms and invited stakeholders to voice their responses to the call for input.
View the FCA's call for input.
View information about the FCA's call for input and related stakeholder events.
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