FG17/8: Streamlined advice and consolidated guidance

Open consultation: GC17/4
11/04/2017
Consultation closes - section 4
23/05/2017
Consultation closes - sections 2, 3 & 5
11/07/2017
Finalised guidance: FG17/8
28/09/2017
Updated finalised guidance: FG17/8
08/12/2017
08/12/2017

This is our finalised guidance on streamlined advice and the fact find process. The summary of feedback outlines the response to our consultation.  We have updated it to include guidance from our Advice Unit in response to queries received from firms.

Show summary of feedback received (PDF)

Show FG17/8 (PDF)

FAMR was launched jointly by HM Treasury (HMT) and us in August 2015 to explore ways in which government, industry and regulators could take individual and collective steps to stimulate the development of a market that delivers affordable and accessible financial advice and guidance to everyone, particularly those who do not have significant wealth or income.

In its final report in March 2016, FAMR set out a series of recommendations intended to tackle the barriers to consumers accessing advice and guidance.

This finalised guidance aims to address two of those recommendations by:

  • supporting firms offering ‘streamlined advice’ on a limited range of consumer needs (recommendation 4)
  • clarifying the fact find process (recommendation 10)

The finalised guidance also includes material from FCA FG12/10 and FG15/1 covering adviser charging, complaints and redress, professional standards, appropriateness and discretionary investment management.

Who this applies to

This new set of guidance is aimed primarily at:

  • firms or individuals providing, or considering providing investment advice, in particular streamlined models
  • firms or individuals providing services to providers of investment advice
  • trade bodies whose members have an interest in the financial advice market

Next steps

In 2019 we will conduct a review of the financial advice market against the measures specified in our baseline report published in June 2017. The findings of our review will be published in 2020.

Related guidance – summary of current status

As there have been a number of changes affecting non-Handbook guidance, we have set out in the table below a summary of related guidance and its status.

Guidance Status

FCA FG12/10: Simplified Advice

Retired with effect from 3 January 2018

FG15/1: Retail investment advice: Clarifying the boundaries and exploring the barriers to market development

Retired with effect from 23 February 2018

Guidance on the advice boundary can now be found in the Handbook at PERG Chapter 8.

Other guidance material that remains relevant has been incorporated into FG17/8   

FCA FG12/15: Retail Distribution Review: Independent and restricted advice

Retired with effect from 11 May 2018.

See PS18/10.

FCA FG14/1: Supervising retail investment advice: inducements and conflicts of interest

Retired with effect from 11 May 2018.

See PS18/10.

FSA FG11/5: Assessing suitability: Establishing the risk a customer if willing and able to take and making a suitable investment selection

Current

FSA FG12/16: Assessing suitability: Replacement business and centralised investment propositions

Current

FSA FG13/1: Risks to customers from financial incentives

 

Current

TR14/10: Developments in the distribution of retail investments: Purchasing investments without a personal recommendation or with simplified advice

Current

TR15/12: Wealth management firms and private banks: Suitability of investment portfolios

Current

 

TR16/1: Assessing suitability: Research and due diligence of products and services

Current

 


Guide for Employers and Trustees on providing support with financial matters without needing to be subject to regulation

A further FAMR recommendation (also consulted on in GC17/4) was for the FCA and The Pensions Regulator (TPR) to develop and promote a new guide to set out what help employers and trustees can provide on financial matters without being subject to regulation. The guide was published on 28 September 2017.

FAMR recognised that that the workplace can play an effective role in assisting consumers to make sound financial decisions. Many employers and trustees may however feel uncertain about what assistance they can provide without needing to be FCA authorised. In clarifying what employers and pension scheme trustees can do in this space, this publication aims to increase the efficacy of the workplace in supporting consumers on the financial aspects of their lives.

Show the guide (PDF)

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