“To be eligible for simplified advice, clients would have to either self-certify as going through the simplified advice process or be ‘nudged’ there by the adviser in an initial triage meeting,” the trade body said in its paper.
Pimfa envisions simplified advice would take the form of basic advice as currently constructed under COBS 9.6 without the need for individuals to only be advised on stakeholder products.
In circumstances where a client may need more complex advice after seemingly needing simplified support on face value, the proposals says advisers should be able to either stop the process altogether, or advise the client to consider full financial advice.
“By reducing the complexity of the suitability requirements and the time required to provide advice, advisers should be able to price simplified advice services at a price point which is far more attractive to the wider UK public,” Pimfa concluded.
FTAdviser has approached the FCA for comment.
ruby.hinchliffe@ft.com
