The Financial Conduct Authority (FCA) recently proposed sweeping changes designed to democratise investment in UK financial products. The aim of the financial regulator is to assist millions of people across the country facing a steep rise in the cost of living to make better returns on the savings they have made.
The FCA laid out detailed plans to empower people with what it referred to as “straightforward financial needs” to receive advice from experts who are less qualified to reduce the cost of gaining guidance.
The watchdog also desires consumers to be offered the option to spread set-up fees for accounts over a longer term, ensuring that the initial costs of investment are not prohibitive.
Firms will be instructed to simplify investment advice and cut down paperwork for small-scale investors under the brand-new regime, which will only cover “mainstream investment products” like stocks and shares ISAs.
The FCA’s proposals were welcomed largely by investor groups and investment companies which, for many years, have called upon regulators to enable financial firms to offer potential investors more services without requiring extra red tape.
An independent financial advisor in Chester, Manchester and other major cities can help consumers across the country with expert and unbiased advice. Wealth managers can always be relied upon to give clear guidance in simple language where all potential risks and returns of an investment opportunity are explained in full.
The new proposals come at a time when UK households contend with rising interest rates and record levels of inflation.
