The expert advisory panel will be led by Nick Prettejohn, chairman of Scottish Widows Group, and is dominated by providers despite the fact the Financial Advice Market Review is supposed to focus on barriers preventing advisers from helping the masses.
Andy Briggs, chief executive of Aviva, Ashok Vaswani, chief executive of retail and business banking at Barclays, Chris Rhodes, group retail director of Nationwide, Nicky McCabe, head of investment trusts at Fidelity, Nick Hungerford, chief executive of discretionary investment manager Nutmeg, Jackie Noakes, managing director of L&G mature savings, and Richard Rowney, managing director of LV Life and Pensions, are the representatives from providers who make up the bulk of the panel.
From the world of financial advice there is just Gill Cardy, former Financial Adviser columnist and now insight consultant for wealth at Defaqto, Richard Freeman, chief executive of Intrinsic, Robin Keyte, a director of Keyte Chartered Financial Planners and member of the FCA’s Smaller Business Practitioner Panel, and Ian Gorham, chief executive of Hargreaves Lansdown.
The panel also features consumer champions Gillian Guy, chief executive of the Citizens Advice Bureau, Alex Neill, director of campaigns and communications at Which, Sue Lewis, chairman of the Financial Services Consumer Panel, and Tom Wright, chief executive of Age UK.
Speaking about his appointment to the panel, Intrinsic’s Mr Freeman said: “It is vitally important that the Treasury and FCA work closely with financial advisers and other stakeholders to ensure that this review is a success.
“The review provides an opportunity to improve consumer access to the benefits of financial advice and I’m pleased to have the opportunity to be involved in that as part of the panel announced today.”
When asked for his views on the make-up of the Financial Advice Market Review expert panel, Chris Hannant, director general of the Association of Professional Financial Advisers, said intermediary’s voices would be heard.
He said “at least one” of the panel was a name recommended by Apfa.
Mr Hannant said he had already met with Harriett Baldwin, economic secretary to the Treasury, and Tracey McDermott, acting chief executive of the FCA, about what the industry wants the Financial Advice Market Review to deliver.
He said: “There is a broad engagement and plenty of opportunity for advisers to have their voices heard.”
Keith Richards, chief executive of Personal Finance Society, said he had also met with Ms McDermott and Ms Baldwin and both were engaged with the review and knew it would have to result in real change for advisers.
Mr Richards said: “Every adviser in the country can be involved in this review. We at the PFS are setting up a mechanism that will allow our members to feed their views to this review through us.”
Earlier on this week the FCA and HM Treasury produced an input document which outlines the areas where the two organisations are seeking comments about how to bridge the financial advice gap.
For the first time in a decade, the regulator confirmed in the paper it is willing to reconsider the unlimited liabilities advisers now face.
The review will consider a single longstop or introducing varied limitation periods linked to the terms of products.
For example, differential time limits which reflect the nature of products or advice, so that liability extends for a longer period when it relates to longer-term products (for example, 25 years for a mortgage).
Enhanced professional indemnity insurance and a compensation fund that would pay out in the event of a justified claim older than 15 years against an individual firm, are also being considered.
The review may also consider whether the government could work with industry and employers to enhance awareness through methods such as sign-posting or public information campaigns.
So-called ‘robo-advice’ is also on the menu of options the FCA and HM Treasury are looking into as a way to plug the advice gap, which a report from Citizens Advice today (15 October) measured as being half the nation.
Another option being considered is whether any ‘safe harbours’ may be appropriate for financial advice, and if so, whether they would be possible, given, amongst other things, the constraints of EU law.
By safe harbour, the regulator stated it means a provision which reduces or eliminates uncertainty and potential liability in certain circumstances or if certain conditions are met.
The Financial Advice Market Review consultation exercise will close on 22 December 2015 with a view to producing proposals ahead of Budget 2016.
emma.hughes@ft.com
