Financial Conduct Authority  

FCA delays advice market review update

FCA delays advice market review update

The Financial Conduct Authority has delayed the next stage in its review of the advice market. 

The regulator is currently evaluating the impact of the Retail Distribution Review and the Financial Advice Market Review, and called for input from the industry in May. 

At the time the watchdog admitted some of its rules might be harming the market and asked advisers if its regulations were driving too many people to seek advice. 

The FCA's website previously said the regulator would publish a further update on its review "later this year" but this has now been amended to "early 2020", with the FCA confirming in a statement yesterday (November 19) it intended to publish its final report next year.

Yesterday the FCA also confirmed the planned changes to its mortgage advice and selling standards, on which it consulted earlier this year, would now not be published in a policy statement until early next year and not later this year as originally scheduled. 

The majority of the RDR rules were implemented by the end of 2012 to increase transparency in the industry and ensuring clients received high quality advice. 

The introduction of the RDR saw the FCA pull the plug on commission in favour of customer-agreed renumeration and the growing cost of regulation saw some advisers leave the industry. 

Speaking with Financial Adviser earlier this year Nisha Arora, director of consumer and retail policy at the FCA, said the City watchdog was open to looking at whether its regulation needed to be changed if found it was "skewing" the advice market.

rachel.mortimer@ft.com 

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