At the end of 2021 the FCA carried out a consultation that took on board feedback and engagement with industry and consumer groups and then set out more developed proposals for new rules to tackle the causes of harmful business practices in the financial services industry.
These new rules will require firms to put even more focus on supporting and empowering their clients and customers to make good financial decisions.
It goes without saying that firms should already be doing this – and many are. However, the new rules will make clear the requirement that firms need to provide their clients and customers with information that they can easily understand, to offer a service that is right and fit for purpose and to provide a high level of customer service.
The FCA expects to confirm any final rules by the end of July 2022.
Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said:
‘Making good financial decisions is vital to financial well-being and trust, but too often consumers are not given the information they need to make good decisions and are sold products or services that do not offer the benefits they might expect. We want to change that.
We’ve been working to set a higher standard for firms, to put more of the onus on them to act in their customers’ interests and get their products and services right.’
At Wi-Ai we strongly support these principles. We also know that, for Financial Advisers, being able to give the right advice means having access to the right tools, so you and your client truly understand your client’s decision-making biases when it comes to their own financial needs and objectives.
Do you feel you could benefit from extra tools that aid you in this process, without creating complex additional administration for your firm?