But we know that many firms feel reluctant about offering simplified advice beyond Isa investments, for example, for fear that it may come back to haunt them.
At a time when the role of digital technology is not yet fully clear – hence the inclusion in this consultation – there is an opportunity to shape or refine the ‘regulatory framework’ in order to ensure technology can successfully be integrated into the advice process, to the benefit of both clients and advisers.
Many other issues are at stake in the consultation document, not all of which can be summarised here. A final important factor to be aware of, however, is that the review is not restricted to regulated advice, but to all forms of support which might play a part in consumer financial decision-making. Professional advisers have a crucial role to play, but it is important that the industry engages with the consultation and explain that role clearly in order for that role to be fully appreciated.
Richard Freeman is chief executive of Intrinsic, part of Old Mutual Wealth. He sits on the Financial Advice Market Review expert panel in a personal capacity
Key points
Earlier this month, the Treasury and FCA published their ‘call for input’ into the Financial Advice Market Review.
There are fewer than 25,000 financial advisers in the UK, compared with over 30,000 two years ago.
The government is particularly keen to understand how the regulatory environment can support technology-based advice models.
