Financial Advice Market Review (FAMR) - guidance consultation
20 April 2017
One of the recommendations of the FAMR is that a new factsheet should be developed and promoted to set out what help employers and trustees can provide to employees on financial matters without being subject to regulation.
Employers have long been concerned about crossing the regulatory advice line when it comes to providing employees with pension or financial ‘information’. The introduction of a factsheet would be a welcome move to provide employers with clarity and the confidence to positively influence their workers’ financial decisions.
The Financial Advice Market Review (FAMR) was launched in August 2015 by HM Treasury (the Treasury) and the Financial Conduct Authority (FCA) to explore ways in which the government, the industry and regulators could stimulate the development of a market which delivers affordable and accessible financial advice and guidance to everyone, at all stages of their lives.
The FAMR final report, published in March 2016, made a series of recommendations for the FCA, the Treasury and other regulators to take forward.
The Guidance Consultation (GC) is part 1 and sets out proposed guidance in response to some of the FAMR recommendations; one of which is that The FCA and The Pensions Regulator should develop and promote a new factsheet to set out what help employers and trustees can provide on financial matters without being subject to regulation.
The FCA aim to publish their response to part 1 in September 2017 and then the part 2 of the consultation will follow in December 2017.
The package of measures is likely to take effect in January 2018 however The FCA expect firms will be able to use any material that they publish in September from that time.