Financial Advice Market Review Final Report
CII/PFS Policy Briefing
14 March 2016
22 September 2017
Policy and Public Affairs
On 14 March, the Treasury and FCA published their final report on the Financial Advice Market Review (FAMR), including some 28 recommendations for possible action.
The Review's aim has been to:
- explore ways in which government, industry and regulators can take individual and collective steps to stimulate the development of a market to deliver affordable and accessible financial advice and guidance to everyone;
- the extent and causes of the advice gap for those people who do not have significant wealth or income; and
- the regulatory or other barriers firms may face in giving advice and how to overcome them.
The final report sets out 28 recommendations aimed at addressing these issues, including the following:
- amend the definition of "regulated advice" so that it is based upon a personal recommendation, in line with that set out in the EU Markets in Financial instruments Directive (MiFID);
- produce guidance (including illustrative case studies) to support firms offering services that help consumers making their own investment decisions without a personal recommendation;
- modify the time limits for employees to attain an appropriate qualification, and allow flexibility by allowing employees to work for up to four years under supervision to obtain an appropriate qualification and experience;
- explore options to allow consumers to access a small part of their pension pot before the normal minimum pension age, to redeem against the cost of pre-retirement advice; and
- challenge the industry to make a pensions dashboard available to consumers by 2019, bringing together industry and consumer representatives to help them set direction and drive progress.
Next steps: the report sets out an indicative timetable over about 3 years to deliver the recommendations.
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.