The Financial Conduct Authority (FCA) has announced new measures to support pensions and investments customers.
If you are seeking financial advice in Cheshire or elsewhere in the UK, investment firms across the country are currently restricted in terms of how much assistance can be given to clients. This is because financial advice is highly regulated, and as a result of this, firms claim there is an ‘advice gap’ for people who are unable to afford regulated advice.
The financial regulator confirmed that it would simplify procedures for investment firms who had requested changes to the existing rulebook. The FCA’s proposals include creating new targeted support for consumers, and enabling firms to offer suggestions to groups who haven’t saved enough for retirement or who hold excess cash. The FCA added that it also planned to change rules to make advice provision more simple, albeit stressing that full financial advice still had a place. It plans to roll out the changes in 2026, pending a consultation.
Commenting on behalf of the watchdog, deputy chief executive, Sarah Pritchard, said that the new rules were envisaged to help consumers prepare for a comfortable retirement and, in particular, people facing complex, life-changing financial dilemmas such as when or whether to save or invest.
The news has been largely welcomed by the industry as a belated corrective move to address the ‘advice gap’, although investment firms have emphasised that the new rules will need to be clearly communicated, with absolute clarity over potential penalties.
