Building on its Project Innovate programme, the Financial Conduct Authority (FCA) has launched an advice unit which will help firms setting up automated models for the purpose of offering low-cost advice to consumers.
Project Innovate, set up in October 2014, offers support to new and established businesses introducing forward-thinking financial products and services to the market.
Christopher Woolard, director of strategy and competition, revealed the regulator’s plan during the Global Digital Banking Conference in London today.
He said the advice unit’s focus will be to support models which look to serve gaps, identified by Financial Advice and Markets Review (FAMR), in the investments, pensions and protection areas of the industry.
Woolard said automated advice gave the industry the opportunity to ensure consistent outcomes for consumers, while stimulating an engaging and cost-effective advice market. However, he added a note of caution to firms looking to expand their proposition in this direction.
“To be clear, automated advice models must meet the same standards as face-to-face advice, and the responsibility for ensuring their model meets the regulatory requirements rests with each firm’s senior management,” he said.
The regulator plans to trial its services with selected firms before producing tools and resources to be rolled out to the wider market.
