The consumer has been given access to their pension pot, but the Government maintains a leash on the experts being able to offer advice.
The vision is of savers splashing cash and emptying the purse due to being ill equipped to manage investments in a turbulent economic market.
If Government regulations are removed are the advisors prepared and able to contact their customers and deliver a service tailored to that individual?
The FCA would say to them don't pick up the bad habits of 3 years ago. But how do you monitor and audit 1000's of advisors?
The savers need a helping hand, but trust needs to be maintained across all parties.
FCA should establish a unit to help firms develop automated services such as the “robo-advisers” introduced by Royal Bank of Scotland. Savers should also be able to make use of part of their pension pot to pay for advice before retiring, the review recommended. Tracey McDermott, the FCA’s acting chief executive, said: “This review has taken place against the backdrop of social and demographic changes which have led to an increasing need for individuals to take more responsibility for their own financial future. But we know that people often find it difficult to engage with financial matters and we need to make it easier for them to do so.”