PFS response to FCA evaluation of RDR and FAMR
Publication date:
03 December 2020
Last updated:
25 February 2025
Author(s):
Personal Finance Society
In response to today’s FCA evaluation of the impact of the Retail Distribution Review (RDR) and the Financial Advice Market Review (FAMR), Keith Richards, chief executive of the Personal Finance Society, said: “‘It is encouraging to see the number of advisers increasing gradually but, as the FCA has stated, “it still has further to go.” In contrast the reducing number of regulated firms is a concern and combined with the increasing financial strain, constraints and risk caused by a hardening PII market and unsustainable increases in regulatory costs.
“Receiving financial advice can make a positive difference to the lives of all those who receive it as well as their family. Despite the Financial Advice Market Review and Retail Distribution Review in 2020 there still simply aren’t enough financial advisers available to provide financial advice to all those who would benefit from receiving it, increasingly leaving the public to fend for themselves or become victims to scams.
“We must remember that the retail advice sector is still rebuilding after many banks pulled out of the retail advice market in the wake of the Retail Distribution Review and that the introduction of pension freedoms has increased the need for financial advice exponentially for people aged over 50.
“One key area to address is the volatility of compensation costs borne by firms in the advice sector, and this can only be addressed by primary legislation, which is beyond the FCA’s scope. As a result, we need a clear lead from government about the future of financial advice – the FCA can’t be expected to deliver the objectives of the Financial Advice Market Review on its own.”
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.
