Advisers are split over whether the regulator’s proposed changes to the pensions and investment advice rules will help them service new clients, according to AJ Bell.
The proposed changes are designed to widen access to advice, with just 9% of the population currently taking regulated financial advice.
However, 57% of advisers surveyed by AJ Bell said the changes are unlikely to help them service new clients, while 37% expect little or no practical change.
Two-fifths (41%) are anticipating only marginal change, while just 13% say the proposals will make it significantly easier to give advice.
Rachel Vahey, head of public policy at AJ Bell, said: “Advisers and the industry broadly welcome these proposals. After all, any attempt to reduce unnecessary complexity, create more proportionate advice processes and give firms greater flexibility should be seen as positive.
“However, adviser feedback suggests there is still significant uncertainty about how much practical difference the changes will make once implemented.”
Vahey said there remains a lack of clarity around how the proposals would operate in practice and whether they would materially change the way advised businesses currently work.
She added: “Worryingly, over half said that the proposals would not enable them to offer advice to client segments they didn’t currently work with. Although some advisers felt the plans would help them service new clients or maintain client relationships which may otherwise have ended, less than one in 10 said it would make a significant difference, while a further 35% felt it might have limited benefit in helping service a wider market.
“It suggests opinion is mixed and the benefits may be marginal. The proposals could help advisers working with current clients, but if the FCA were after wholesale change to the advice landscape, they may have to return to the drawing board.”
