Financial advisers are divided on whether the Financial Conduct Authority’s (FCA) proposed changes to pensions and investment advice rules will help them service new clients, a study from AJ Bell has shown.

The FCA’s consultation on making it easier for firms to give simplified forms of personalised financial advice, which closed on 22 May, aims to help more people get financial advice for important decisions, working alongside targeted support to enable consumers to access a range of advice services.

However, AJ Bell’s survey found that 39% of advisers felt the proposals would have no material change to their ability to offer advice to client segments they do not currently support, while 18% said they were unlikely to have any effect.

More than a third (35%) believed the proposals would have a limited impact and 9% said they would have a significant impact.

Just 13% felt the changes would simplify the delivery of advice, while 41% said they would make it marginally simpler, 37% believed they would result in little or no change, and 9% said they would add complexity.

When asked about their overall view of the proposals, 22% said they were very welcome, 27% felt they were mostly welcome, 35% were neutral, 11% were mostly concerned, and 6% were very concerned.

“Good financial advice can make a real difference to people’s lives, yet only around 9% of the population currently take regulated financial advice,” commented AJ Bell head of public policy, Rachel Vahey.

“So it’s encouraging to see the FCA looking at ways to make advice simpler and more accessible.

“Advisers and the industry broadly welcome these proposals. After all, any attempt to reduce unnecessary complexity, create more proportionate advice processes and give firms greater flexibility should be seen as positive.

“However, adviser feedback suggests there is still significant uncertainty about how much practical difference the changes will make once implemented.

“A survey of advisers using the AJ Bell platform indicates that while many firms support the direction of travel, there remains a lack of clarity around how the proposals would operate in practice and whether they would materially change the way advised businesses currently work.

“The proposals could help advisers working with current clients, but if the FCA were after wholesale change to the advice landscape, they may have to return to the drawing board.”

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