Back in March 2016 the Financial Advice Market Review (FAMR) recommended the FCA set up a dedicated team to help firms develop and deliver mass-market automated advice models more quickly. As a result the Advice Unit was established in May 2016. They provide regulatory feedback to firms which aim to deliver lower cost advice, discretionary investment management services to consumers. So far they've opened 2 tranches of applications from firms and have approved 17 requests to date.
Initially the Advice Unit was only open to propositions which aimed to cover gaps in the market as identified by FAMR, namely:
However it's since been expanded to also include propositions from firms in the mortgage, general insurance & debt sectors.
Firms that meet the eligibility criteria can request regulatory feedback from the Advice Unit to help where existing rules and guidance provide insufficient detail. Within the Consultation Paper (CP17/28) there's case studies along with questions from those firms within the first 2 tranches and the regulator's response.
The term “Insistent client” is used to describe an individual who has received a personal recommendation but chooses to do something other than follow the adviser’s personal recommendation. The proposals in CP17/28 are designed to increase confidence for advisers and providers when dealing with insistent clients.
The guidance is a follow up to FCA factsheet 35, which proposed 3 key steps to dealing with insistent clients, expanding it to a 5 step process in CP17/28. The steps are:
Back in August we focused on the changes to the definitions of guidance and advice ahead of their implementation on 3 January 2018. You can read this article here.
Senior Business Development Manager
Justin Corliss is a Senior Business Development Manager with Royal London. Justin’s career in financial services began in his native Australia in 1997, where he worked for the Commonwealth Bank of Australia in client facing mortgage roles. Since moving to Scotland in 2002 he has held positions as a broker consultant for both Scottish Widows and Scottish Life dealing predominately with pensions. Before assuming his current role he worked as an Employee Benefits Consultant with a private firm. Justin holds the Chartered Institute of Insurance Advanced Diploma in Financial Services including AF3 & AF7.