Review urges improvements in how consumers get financial advice

The Financial Conduct Authority (FCA) and Government have reviewed how less well off consumers can get better financial advice, such as on saving for their retirement.

The review, known as the financial advice market review or FAMR, calls on the Government to allow consumers to access a small part of their pension pot to redeem against the cost of pre-retirement advice.

Britain has brought in reforms allowing people over 55 years old to cash in their pension pots as part of efforts to widen choice in retirement savings.

The review also recommends that the FCA sets up a unit to help firms develop automated advice, also known as “robo” advice.

Tracey McDermott, acting CEO of the FCA, said: “This review has taken place against the backdrop of social and demographic changes which have led to an increasing need for individuals to take more responsibility for their own financial future.

“But we know that people often find it difficult to engage with financial matters and we need to make it easier for them to do so.

“The package of reforms we have laid out today will help increase both the accessibility and affordability of the advice and guidance to ensure that consumers get the help they really need when they really need it.”