Financial Advice Market Review: Terms of Reference – a light at the end of the tunnel?

Financial Advisory

21 April 2016

Financial Advisory

Facilitated and written by: David Ingram – Aim Two Three Expert: Brendan Llewellyn – Adviser Home

Headline Finding 1:

Concerns of Treasury seem to be concentrated on middle earners / middle wealth owners “Mass affluent”.

Headline Finding 2:

Feedback suggests a lower qualification level for advisers looking at protection and savings would help reduce advice gap.

Headline Finding 3:

Redefine advice so that basic advice can be delivered with a lower regulatory cost.

Headline Finding 4:

Robo advice may depress fee levels for all advice types.

Headline Finding 5:

Funding of new business models can be difficult.

What’s next?

FOS should ‘back-test’ simplified advice based on lower expectations than a face advice model.

  •          Workplace solutions.

Specific need for clarity of the difference between guidance and advice.