In particular, we need an urgent review of the definition of advice and guidance, providing a clear distinction between the two, and a clear regulatory framework for the development of simplified advice propositions enabling consumers to access low-cost and simplified savings and investment propositions, providing enough flexibility for the government and regulator to create an advice ladder that works for all.
The focus on products and protections are understandable given the significant change and demands placed on consumers as a result of freedom and choice. However, we do not believe that this is sustainable for the long term – policy should be focused towards achieving the best outcome, not protecting against the worst.
For this to be achievable, consumers need to be provided with a variety of support services from government-sponsored guidance through to holistic financial planning.
Liz Field is chief executive of Pimfa