Consumer Panel tells MAS to 'push regulatory boundaries'

In a position paper published ahead of today's report stage and third reading of the Financial Services Bill before MPs, the statutory body outlined measures needed to remedy the effects of the Retail Distribution Review (RDR), which could leave more consumers without advice.

It said the MAS should go further than just signposting, pointing out the need for more effective and quicker links to other parties.

"Unregulated advice, which can mean information and guidance as well as generic advice, is a valuable tool for consumers," it said.

"We are encouraging bodies such as the MAS to push regulatory boundaries to deliver a more effective service for consumers."

The FSCP also welcomed the FSA's efforts to engage firms on simplified advice, although it accepted there was an "impasse" in the development of such propositions.

Referring to the simple products which could be allied to simplified advice, it said they could be complex in make up as long as they are low risk and ‘do what they said on the tin', making it less likely consumers will seek recourse through the Financial Ombudsman Service.

Meanwhile, it lent its support to portable fact finds, which it said could be used by consumers when they access different types of advisers, cutting down on time and costs.

Adam Phillips, chairman of the FSCP, said: "While we are fully supportive of the RDR in eliminating bias and raising professional standards in the industry it may not solve the ever widening advice gap and we want the industry to look more innovatively at developing appropriate solutions.

"We believe there is mileage in this, particularly if advice can be linked to reliable products that consumers can trust."

In today's paper, the FSCP also underlined its desire to see professional standards for financial advisers raised even further, to a minimum of QCF Level 6 or Chartered status.