Targeted support will not reduce the importance of holistic financial advice, but it will narrow the advice gap.
This is what FCA head of department, consumer investments Kate Tuckley said at Money Marketing Interactive conference in London today (9 October).
Tuckley added that the FCA’s financial lives survey has consistently showed that only 9% of those in the UK receive advice.
She also spoke highly of the role advisers play and their “critical” role in explaining both the benefits and the risks behind investments.
Earlier in October, FCA director of consumer investments Lucy Castledine said its proposed framework for targeted support will define the shape of the UK retail investment market for the next 20 to 30 years.
The FCA has found that around 7 million UK adults with £10,000 or more in cash savings may be missing out on investment growth, while nearly 15 million are not saving enough for retirement.
“This is a once-in-a-generation opportunity to reshape the advice landscape and improve how people engage with their financial decisions,” Castledine said.
Echoing Tuckley, Castledine added: “Full-fat advice will continue to play an important role, but targeted support and simplified advice should become part of a continuum so consumers can choose what is right for them.”
In regards to the consolidation of the advice market, Tuckley outlined that the regulator is “agnostic”.
The FCA “just wants to see a fair playing field for all sized firms”.
The city watchdog wants to be a smarter regulator in how it approaches these issues by enhancing its technology.
Being a smarter regulator is on of the four pillars within it’s 2025-2030 strategy.
The other three priorities are supporting growth by enabling investment, helping consumers to boost trust and to fight financial crime to clamp down on bad actors harming consumers.
