14% of advisers sceptical that FAMR measures are closing the advice gap

Just one in seven (14%) of advisers feel that FAMR’s key measures are helping to close the advice gap, despite 33% agreeing that FAMR’s key measures are beneficial, according to research conducted by Aegon.

Of the advisers that were surveyed, 70% of them agreed with the new definition of regulated advice, which is linked to providing a personal recommendation. However, 69% of advisers do not think it is helping to close the advice gap, whilst 44% support the development of clearer guidance on what can be provided through streamlined advice, but only 16% think that it is having a real-life impact.

Almost 50% of advisers supported the FCA setting out what assistance employers and trustees can provide on financial matters without being subject to regulation, in the form of factsheets and guidance, but only 8% said that these new documents are helping.

The government is aiming to develop an online Pensions Dashboard from 2019 and 49% of advisers support the idea, while 20% strongly support the concept, despite 45% of them disagree that the dashboard will help close the gap. A quarter of the advisers surveyed reported being “unsure” on whether the dashboard would help.

There was strong support from advisers to increase the income tax and National Insurance exemption for employer arranged advice on pensions from £150 to £500, with 69% agreeing on the measure. However, only 37% said that they think it will assist in closing the advice gap, with a further 18% unsure.

Aegon director of pensions Steven Cameron stated: “The Financial Advice Market Review (FAMR) presented a huge opportunity to address the advice gap. In today’s world, people more than ever before have to take responsibility for their finances and seeking advice is the best way to do this. Two years on from the publication of the FAMR report, advisers remain broadly supportive of the measures that emerged, be it the Pensions Dashboard or clearer guidance on what can be provided through streamlined advice. However, when it comes to how effective these have been in practice, the findings are very disappointing. The FCA’s Business Plan points to a review of the impact of FAMR and the RDR but not until 2019. There’s clearly an opportunity for the industry and the FCA to keep working together to identify how to turn a major opportunity into widespread practical benefit.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.


Inside the world of high net worth lending
The mortgage market continues to evolve, and so too does the answer to the question: what is a high net worth individual in today’s market? In this episode of the Mortgage Insider podcast, host Phil Spencer is joined by Stephen Moroukian, Head of Product and Proposition for Real Estate Financing at Barclays Private Bank, and Islay Robinson, founder and CEO of Enness Global. Together, they explore what brokers really need to know when supporting high net worth individuals.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.