Financial Advice Market Review
Adviser Home Consultation
As soon as FAMR was announced at the start of August we started our consultation process asking both advisers and providers what they would like to see come out of the Review, and how they would address the Advice Gap. We ran an event earlier in October to get advisers, providers and the regulator ( and HM Treasury ) round the table in workshops. Here’s just a few quotes from our adviser research - view here>>
Adviser Home in the media
FT Adviser - View here>>
Professional Adviser - View here>>
Latest articles: Part of a regular series we write as Armchair Critic asking how the sector should respond to the challenge in FAMR Professional Adviser >> and Financial Adviser>> where the News Editor gives his interpretation on the top findings in our latest adviser research.
Our Industry Commentator View – John Lappin.
Does the Financial Advice Market Review require an unprecedented understanding of business models? View the full article here>>
Financial Advice Market Review – How could you help with the advice gap?
Our first round of adviser research drew a record response and thanks to the many advisers who took part. During this time we have been working with the FCA and HM Treasury, discussing our findings and setting the course to drill down further into the issue. In brief:
- Only a minority of consumers benefit from financial advice, a much greater number could potentially gain from the experience but advisers are focussed, quite rightly on those clients where they can offer a profitable service. So, do we just accept this or do we look for solutions – we think the latter.
- It’s clear from your feedback that the costs of giving advice, the risks you take on, the regulatory burden all act as a brake on business expansion. Is the solution more advisers? If so how? Is the solution robo- advice? But what is that anyway? We think advisers need to engage with these issues as they take shape.
Our second round of research - culminating in the report, Man V Machine 2, is now complete and again thanks to all those who took part. We have given some input to HM Treasury who find our ability to report on wider adviser market views essential to the whole excercise. The highlights are:
- Around half of advisers plan to expand, but half don't! Those that don't see regulation and associated costs as the main reason for caution. At Adviser Home we believe that some important regulatory changes are required to kick start growth in the adviser sector.
- Growth through adoption of new technologies including digital or robo advice - this is supported by some but is a matter for great concern for many - unlesss liabilities are entirely clear.
- Advisers see scope for greater efficienciency and hence productivity - areas for development include access to existing investment valuations and the creation of suitability reports.
- The idea of a lower tier for qualitfied advisers is embraced by some as a solution for consumers with simpler needs or lower levels of wealth, but for some advisers this is a backwards step
Next Steps
The HMTreasury and FCA have published their Final Report - and here's our initial response>>
Meanwhile - please share your views below.
