The Opportunity in the FCA’s Advice/Guidance Boundary Review for Financial Advisers

It’s positive that many financial advisers are seeing the FCA’s advice/guidance boundary review as more of an opportunity than a threat. Initial concerns may be easing as some advisers, 45% we are told in the latest Schroders’ Financial Adviser Survey, look at the review as potentially a new business opportunity. It’s often forgotten that first, and foremost, Financial Planners and advisers generally are business people. Their primary duty is to make a profit and seeking new business is a primary objective.

According to the survey nearly a half of advisers see the advice/guidance boundary review as a chance to serve some existing clients better and potentially reach new clients.

If it gets it wrong, the FCA could risk undermining the whole IFA sector and the principle of independent, impartial, and holistic Financial Planning. Equally, with the Schroders survey suggesting millions are under-served or un-served by the advice sector there is plenty of room to give more people access to financial advice and suitable investment and retirement products.

A good example, as the FCA has pointed out itself, is the over-reliance on default funds within some products, such as auto-enrolment pensions, and the millions who stash large sums in poorly-paying savings products because they do not have the knowledge to make their money work harder by investing.

When this happens many planners and advisers and, of course, many online financial providers will be waiting to launch a raft of new products and ideas. Unless any new government stops the changes, the moves should be positive and give many more people the chance to invest and plan for a better future.

FAQs

1. What is the FCA’s advice/guidance boundary review?

The FCA’s advice/guidance boundary review is a regulatory review that aims to ensure that financial advisers can provide appropriate advice to clients without undermining the integrity of the financial planning sector.

2. How can financial advisers benefit from the review?

Financial advisers can see the review as an opportunity to reach new clients, serve existing clients better, and potentially launch new products and services to cater to a wider range of customers.

Conclusion

The FCA’s advice/guidance boundary review presents a significant opportunity for financial advisers to expand their businesses, reach new clients, and offer a greater range of financial planning services. By embracing the potential changes resulting from the review, advisers can contribute to a more inclusive and accessible financial planning landscape for individuals seeking to secure their financial future.