In a speech at Mansion House, Bailey said that the provision of advice was a "major area of attention" for the regulator, and that it was "crucial" given consumers now have more choice over what to do with their savings. He said that many people are not saving enough to meet their expectations for retirement and highlighted issues for older people in terms of managing their finances. To give an example, the transfer of a pension saving from a DB to DC scheme is one of the most complex transactions an individual can undertake, with a genuinely high degree of uncertainty around some of the key variables that drive outcomes. Auto-enrolment and workplace pensions help in this respect, but the challenge remains, ' Bailey added. There are also risks to consumers, which is where the FCA comes in.
These changes imposed higher qualifications on advisers, banned them taking commission from financial product providers and increased the range of investments they had to consider in order to call themselves "independent".
While he praised the RDR for removing product biases and improving professionalism, he said that too few people were accessing advice, in part due to the low interest rate environment.
He said this was likely to have an even greater effect on smaller investments where the fixed cost of advice - which, he said, was "inevitable" - looked unfavourable relative to amount invested.Читайте также: 'Riverdale' showrunner previews first page of 'The Chilling Adventures of Sabrina' pilot
Bailey said he hoped the regulator's current reforms, the Financial Advice Market Review (FAMR), would develop "a market which delivers affordable and accessible financial advice and guidance to everyone, at all stages of their lives".
In his speech Bailey went on to breach the topic of the hazy advice and guidance boundary, arguing it was important to "do all that we can" to provide clarity on the difference between the two offerings.
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