The Financial Inclusion and Markets Centre (FIMC) has responded to the FCA consultation CP25/17 Supporting consumers’ pensions and investment decisions: proposals for targeted support. The response can be found here: ADVICE GUIDANCE CP27 17 FINANCIAL INCLUSION AND MARKETS CENTRE SUBMISSION 290825
The FCA’s proposals are a real cause for concern. We very much share the stated objectives of the FCA to help consumers make better financial decisions on pensions and investments. But, we are concerned that the FCA’s choice of intervention, targeted support, will not have the positive impact expected by the FCA. Targeted support would represent a weakening of consumer protection and restrict consumer rights of access to redress, and further complexify an unnecessarily complicated advice market.
The reforms are also unnecessary. The stated goals could be achieved through more robust application of the FCA’s flagship Consumer Duty regime, which would not result in a weakening of consumer protection standards and access to redress.
Worryingly, it looks like important direct marketing consumer protection measures may also be under threat.