Innovate Finance has responded to the Financial Conduct Authority’s consultation CP26/10, which focuses on how to make it easier for firms to give more simplified forms of financial  advice to consumers.

We are supportive of many of the proposals outlined in CP26/10 and believe they represent a positive step towards enabling more proportionate, technology-enabled advice models. We particularly welcome proposed steps to reduce unnecessary regulatory friction, which currently constrains innovation and scalability in financial advice. 

These proposals are reflective of a broader shift towards outcomes-focused regulation and a reliance on Consumer Duty principles, particularly in relation to ongoing services and disengaged clients. 

However , as we outline in our response, there are areas where firms may feel reluctant to take advantage of the flexibility offered in these reforms, due to lack of clarity or inconsistency between the consultation paper text and the rule text. We address these areas in detail in our response. 

Overall, the policy direction is welcome; provided firms are given sufficient clarity to implement proportionate approaches with confidence.

Read the consultation response here

Read our Innovate Finance response to CP26/10: Simplifying the Pensions & Investment Advice Rules

Want to get involved in our Retail Investment policy work? Contact policy@innovatefinance.com