"So fewer tick boxes, better outcomes for consumers, increased consumer trust."
'Genuinely innovative'
Another area of reform Pritchard touched on was the advice-guidance boundary review.
The FCA published a policy paper with HM Treasury in December last year which set out its early thinking but she said there was no need for a company with an innovative idea to wait for the regulator to complete its reforms.
Pritchard said the challenges at the heart of these reforms included:
- how the FCA can build in appropriate consumer protections
- to what extent the FCA needs prescriptive vs. outcomes-based regulation
- balancing firms’ desire for certainty with the need for space to innovate
Pritchard said: "Reform takes time but there is no need to wait; we want firms to consider how they can better support their customers now.
"That is why in August 2023 we published practical examples of the types of activity that firms can provide without crossing into ‘advice’ or personal recommendation under the current rulebook.
"This should help firms get closer to the current advice guidance boundary and deliver for their clients with confidence.
"We stand ready to help those with new, genuinely innovative ideas, bring them to market."
Despite this, the FCA said the aims of the advice-guidance boundary review would only be met if there was a "vibrant and sustainable" advice market.
She said: "We want consumers to be able to access current full advice offerings as well as testing the need for a new simplified advice regime, and better forms of help through targeted support.
"The ambition that consumers have access to the help and guidance that they need, at a cost they can afford, when they need it – so that they can make informed decisions – will only be achieved by the market providing a wide variety of offerings."
damian.fantato@ft.com
