UK Proposes Streamlined Financial Advice to Reduce Costs for Consumers

The UK is considering streamlining financial advice regulations to make it more affordable for consumers.

The aim is to bridge the gap between expensive, regulated financial advice and free, generic guidance. This would enable banks and financial firms to offer helpful information to less affluent clients without the costly compliance measures.

The Financial Conduct Authority (FCA), supported by the finance ministry, is working to define when non-regulated support can be provided and to introduce simplified advice for those with less to invest.

These changes would help a broader demographic make informed financial decisions while avoiding the high costs of full advice, which only 8% of UK consumers received last year. The proposals also include provisions for firms to offer group-specific guidance.

Industry experts, such as Philip Deeks from KPMG UK, have praised the clarity and potential benefits of these proposals. PIMFA, representing financial advisers, also acknowledges that the changes could help more people receive tailored financial advice.