Pretty sure advisers have been saying this from the start, but there we go.
The idea, as advisers speaking to FTAdviser said, is laudable.
The FCA has rightfully concluded that certain savers are not currently served as effectively as the could be by the traditional advice market, often with the bulk or all of their savings in cash accounts or cash Isas.
Financial literacy is low, and the advice market has not been capturing the four million or so people whom the regulator has identified as a good target market for simplified advice. So, why not provide "core investment advice?"
But the question still remains of what happens when "core investments" don't go up all the time; when markets collapse, when bonds behave very much like equities; when expected unexpecteness hits portfolios hard?
As Sally Hickey reported, advisers were concerned how these clients might feel when a statement shows their portfolio has dropped in value - will complaints to Fos escalate? And how might all this need to be fed into the new consumer duty regime?
There are obviously more questions to be asked of this CP, which closes on January 16, 2023 - enough time to write your responses in between mouthfuls of turkey leftovers.
Warnings over inflation
And then on December 1, just as most households had finally succumbed to the pressure of dragging boxes of decorations out of hibernation, the FCA put out its proposed regulatory framework for pension dashboard service firms.
Coming in at 328 pages long, this meaty tome appears to be the result of the FCA having had "greatness thrust upon it".
Did I detect some snark in the comment: "The government intends to make us responsible for regulating commercial bodies that operate pensions dashboard services"?
Maybe that was the eggnog talking already, but by the end of December 1 I have felt as deeply sorry for the FCA in pushing all these regulatory proposals out as I am for those in the industry who have to read and digest and respond to them.
Hats off to the FCA, really - this must be a mammoth task to get these papers out - but my, oh my, that's a lot for small, directly-authorised advice firms to deal with over the next few weeks.
Under this consultation, which is intended to focus on how platforms can best provide the right outcomes for the end user, platform and Sipp providers will be required to warn investors of the impact inflation can have on their pensions.
The FCA has also stated: "Firms must have proper controls in place to manage risks. We propose to apply our senior managers and certification regime and our systems and controls rules on conflicts, risk management and outsourcing."
