Christopher Woolard, director of policy at the Financial Conduct Authority, has affirmed the regulator’s commitment to product and service innovation including the provision of simplified advice services, stating such service evolution is “a good thing for consumers”.
Giving evidence today (28 October) to the EU and Financial Affairs sub-committee in parliament, Mr Woolard said that the FCA have launched ‘Project Innovate’ as a result of the belief that product innovation is positive for consumers.
Project Innovate is an FCA initiative which will help both start-ups and established businesses bring innovative ideas to financial services markets. It has been discussed in particular relation to efforts to bring new ‘simplified advice’ models to market to fill the ‘advice gap’.
Mr Woolard also said that there was a cultural question underpinning innovation. He elaborated by saying that it was important to make sure that product innovation is genuinely in customers interests.
The comments come on the day the regulator launched a ‘Project Innovate’ hub, which will include technical resources and a guarantee of personal support during an after development - including “guidance” and “informal steer” where appropriate.
The intervention also comes in the wake of criticism from the industry, including in an Adviser Rant published today on FTAdviser written by Phil Young, managing director at Threesixty, of the approach of the FCA in this area.
In particular, Mr Young said calls for simplified advice would not happen until the FCA was willing to give assurances to the industry that they would not be liable for decisions taken. He branded the call for innovation as being “as futile as calling for evolution”.
Elsewhere during the evidence session, Mr Woolard discussed crowdfunding and highlighted the fact that there are a number of different approaches and that there is an argument for basic standards to be introduced at a European level to regulate the sector.
ruth.gillbe@ft.com
