© Reuters. Britain reviews market for financial advice

LONDON (Reuters) – Britain’s Financial Conduct Authority has begun a review of whether consumers are getting value for money from financial advice at a time of rapid changes in pensions and other products.

The agency will assess whether changes made since 2012, including the retail distribution review and the financial advice market review, need updating. It will publish its findings in 2020.

“Consumers can struggle to assess the cost of advice and may overpay for services which they do not need,” the FCA said in its consultation paper.

Hugh Savill, director of regulation at the Association of British Insurers, said the advice market is not working for most people.

“The measures proposed in the financial advice market review were supposed to lower costs and narrow the advice gap, but this has not materialized in reality,” Savill said.

Tom McPhail, head of policy at Hargreaves Lansdown (LON:), said the nature of financial advice was moving away from a recurring relationship with regular fees to one where people buy advice to address specific issues.

Previous reviews have focused on toughening qualifications for advisors and curbing commissions that create a conflict of interest.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

2019-05-01