Watchdog probes financial advice gap as millions miss out
Many consumers think that financial advice is too expensive for them - but that can end up being an expensive mistake if they end up making the wrong financial decisions on their own
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Your support makes all the difference.The Treasury and the Financial Conduct Authority has today launched an investigation on how to improve consumers' access to financial advice. The study will examine the kind of financial advice that consumers want and ask whether there are gaps between what we want, and what we can access and afford.
It will also be asking if there is an advice gap – which there certainly appears to be - how can it be closed? And could technology, such as robo-advice – help?
Tracey McDermott, acting CEO at the FCA said: “The financial decisions people make can have long reaching effects. It is important that the market provides accessible and affordable advice when people need it.”
Tom McPhail of Hargreaves Lansdown believes there is a gap between what investors want and need, and the services permitted by the regulatory framework. He said the investigation by the government and the FCA offers an opportunity to address the gap and to develop services which better meet individuals' needs.
“Financial advice has become a binary proposition because of regulation; it has to be either full, personalised advice, which is too costly for many people, or not exist at all,” he said. “Many consumers just want a bit of help, and we believe policymakers should be focusing on this ‘third way’.”
What’s your view? Do you know where to go for advice? Could you afford it? Does it matter? Get in touch with your views and we’ll pass them onto the authorities before their consultation closes on 22 December. Email me at s.read@independent.co.uk
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