"Three cheers for FAMR one year on" "Three cheers for FAMR one year on"

27 Apr 2017 Ken Davy

Regulator released Financial Advice Market Review recommendations and updates on progress

Thanks to the Financial Conduct Authority (FCA), many had more to digest over Easter than chocolate eggs.  

Three days before the holiday, FCA and the Treasury issued a raft of important papers delivering feedback and recommendations on Financial Advice Market Review (FAMR).  Given their potential importance and with one major exception, the generally positive impact the proposals are likely to have on financial advisers, it is disappointing the timing means they have not had the media coverage they deserved.

I urge you to download the FAMR Progress Report from the Treasury website. 

At 12 pages, it is readily digestible and provides comments and clear explanations of how each of the 28 recommendations progressed. For example, recommendation 20 was that the FCA should review the funding of the Financial Services Compensation Scheme (FSCS) to explore the merits, risks and practicalities, of alternative approaches.  

The consultation period on the FSCS review is closed, and we wait with baited breath for the outcome later this year. We expect a positive outcome for financial advisers, however I am concerned that the FCA is going to consult further on some aspects, with a view to not making the final rules until 2018. Depending on the details of the areas this covers, I believe this work must be accelerated.

The key issue of the difference between “advice and guidance” is recommendation 17, where the Financial Advice Working Group, after considerable market testing, concluded the answer is a simple description for consumers of what guidance and advice mean, to be set side by side.   

Looked at positively, this has the potential to be a massive step forward in regards to consumers’ understanding of the difference between guidance and advice.

Ken Davy is chairman of SimplyBiz


Testimonials

"I am very pleased with the service and can’t imagine I would ever leave SimplyBiz"

Christopher Whickam
The Financial Planning Centre

Read More

Latest News

Ken Davy: "Dump those bad apples and embrace SM&CR"

August 10, 2017

It only takes a few rotten apples to add some very big numbers to every good adviser’s FSCS bill, so anything that will help us rid our sector of them is to be welcomed.

Read more >

Ken Davy: "Taking a weather check on pension freedoms"

August 02, 2017

BBC weatherman Michael Fish famously failed to forecast the hurricane in October 1987, which overnight destroyed 15m trees and turned the town of Sevenoaks into just one oak.

Read more >

Ken Davy: Revised managers' regime will uncover 'reckless and criminal' firms

July 28, 2017

The Financial Conduct Authority’s extension of the senior managers’ regime will help weed out “reckless and criminal firms”, financial adviser support firm SimplyBiz Group says.

Read more >

Ken Davy: "Good financial advice means more holiday cash"

July 26, 2017

As you prepare for a well-earned summer break, I urge you to reflect upon some detailed research by ILC-UK into the value of financial advice, which has revealed that even those consumers who are just getting by can be more than £40,000 better off if they receive advice.

Read more >