"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

"SimplyBiz has an excellent website offering SL templates and many benefits, plus their technical departments are really helpful. Furthermore the members meetings and technical workshops are of great benefit, especially for the one man band IFA who has little contact with the rest of the industry."

Larry Bignell
Boldon

Read More

Latest News

The new HMRC Trust Registration Service - what advisers need to know

June 16, 2017

The new HMRC Trust Registration Service - what advisers need to know

Read more >

"Treat all those you care for with love while you can"

June 15, 2017

As this is my first column for about seven weeks it will be a very personal one and I would like to start by thanking the many hundreds of financial advisers and others in our great profession who have sent messages of condolence and support to me on the sudden loss of my beloved wife, Jennifer. 

Read more >

Keeley Paddon: Considerations for a positive DB transfer recommendation - Part 2

June 08, 2017

Read more >

NMBA - How Govt's apprentice funding freeze risks the future of advice

June 06, 2017

Existing training providers have seen their funding slashed while advice firms have to wait longer to register their employees for apprenticeship schemes.

Read more >