FAMR assumptions imply more market intervention - Ken Davy

here are still some vitally important basic principles underlying the financial advice market review to which I would like to draw to your attention.

I have previously touched briefly on my disappointment that it fails to refer to ‘advice’ in its true regulatory sense.

This is particularly important given the high price regulated advisers pay for the privilege of being able to provide regulated advice.

Using the more readily understood terms of ‘advice’, ‘guidance’ and ‘information’ would, I believe, have been far clearer for respondents to the ‘call for input’. The consultation paper shows a more complex transition from personalised advice through to generic or non-personalised.

It should also be noted, however, that the Treasury has issued an additional consultation paper specifically on Public Financial Guidance to be considered alongside the FAMR paper.

I would like to highlight two further basic, but very questionable, assumptions made in FAMR which are presented as statements of fact.

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