Do your bit to influence FAMR outcome

Bad as it was for those involved, the likelihood is that, while momentarily sympathetic, we soon went back to living our own lives and our own concerns.

In a similar vein, as financial advisers, while we get upset, frustrated and, yes, angry when we are immersed in, perhaps even drowning under the weight of, unprecedented regulation, the rest of the business and political world generally carries on as normal.

I say ‘generally’ very deliberately as I believe we currently have a unique situation in which the government, in the form of the Treasury, is paying real attention to the financial advice sector through the Financial Advice Market Review.

Make no mistake, the Treasury is not doing this through any altruistic concern for our interests and, frankly, we should not expect it to.

It is the old story that if you do not bother to vote, you do not have much right to complain

Its concern results from a recognition that consumers benefit from sound financial advice and that if the public in general are better protected by life insurance and are better off in retirement through savings, the ultimate cost to the Exchequer, and therefore the country, will be less.

The government has also identified that currently – particularly post-RDR – neither of these needs is being properly met because not enough sound advice is readily available to the average consumer.

Having identified the problem and its importance, there is no doubt that the government – in conjunction with the FCA – is determined to try to solve it, and the FAMR is a vital part of this process, which is why I have been at pains to stress its importance to you over the past few months.

I urged you to make your views known to the review, and I know from separate correspondence that a number of you have done so. It is the old story that if you do not bother to vote, you do not have much right to complain.

Of course the outcome of FAMR is unknown, and will probably remain so for a few months. However, it is vital that financial advisers pay very close attention to the results when they do emerge, as they are likely to have a profound effect on the way the sector works.

Unlike the weather in Cumbria, I do not believe there are unprecedented storms ahead for advisers, nor do I expect you to be drowned by more regulation. Rather, there are going to be significant new opportunities for you to serve your clients, and consumers in general, much more effectively.

Ken Davy is chairman of the SimplyBiz Group