A review of advice fees is an ‘option’ the Financial Conduct Authority (FCA) is considering as part of its 2019 business plan.
In 2016 the regulator launched a market study of asset managers’ charges which followed on to the platform market study, the interim report of which was published today.
Speaking with New Model Adviser® the FCA’s director of competition, Mary Starks (pictured), said advisers are the ‘missing gap in the value chain’ and the regulator was considering a review of them next year.
‘We haven’t taken any firm decision on next year’s business plan but you are not the only person to have asked the question. So I suppose it is on the table but no firm decision [has been made] as of yet.
‘It is definitely an option and a number of people have suggested it,’ she added.
Starks said the reason no FCA review of IFAs charges has been carried out recently is because advisers have been so burdened by regulatory change in recent years.
‘The thing that has stopped us doing it earlier is that advisers have been under a lot of scrutiny and subject to lot of regulatory change. Between the retail distribution review and the financial advice market review there has been a lot of work in that space,' she said.
‘I think we wouldn’t revisit that space until there had been bit of time to play through. I guess the judgement for us is when is the right time and that is a judgement we haven’t taken yet.’