The Financial Conduct Authority (FCA) has published a consultation on updated advice rules, seeking views on how to make it easier for firms to give simplified forms of personalised financial advice.

Its Simplifying the Pensions & Investment Advice Rules consultation 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.

It has two main objectives: to consolidate, simplify and reframe advice rules by modernising and clarifying regulatory requirements and reducing regulatory burden; and to review the FCA’s existing rules relating to advisers’ ongoing services.

The reforms will look to establish a regulatory framework for advice to support consumers now and in the future.

Simplified advice is aimed at those with more ‘straightforward’ financial needs that do not require a full assessment of their financial circumstances.

The FCA noted that while firms were already able to provide more simplified forms of advice, many do not offer it.

Its consultation looked to encourage innovation and open access, proposing ‘small’ changes while maintaining appropriate consumer protections to revitalise the sector.

The regulator proposed simplifying and consolidating the suitability framework into a single set of common rules and expectations.

Existing flexibilities in suitability rules will be clarified, with the expectation that advisers will consider ‘sufficient’ information.

It also proposed rebalancing the role and purpose of suitability communications to help firms make them concise, consumer focused, and proportionate.

The consultation outlined changes aiming to give firms greater flexibility in how they design and deliver ongoing advice services, including moving from a fixed annual suitability review to periodic reviews based on clients’ needs.

The FCA added that it was seeking views about the future of trail commission payable to advisers, with the aim of modernising the rules and preventing potential consumer harm.

Qualification standards for advisers will remain unchanged, and the FCA did not propose any changes to the adviser charging rules.

“For too long the support people need to make important financial decisions has been out of reach for many,” said FCA deputy chief executive, Sarah Pritchard.

“A market that provides good quality, lower cost simplified advice alongside comprehensive financial advice and targeted support will better support people making decisions about their financial lives.

“We want to see more people getting supported, who aren’t currently, and a market that innovates and offers tailored services to meet differing consumer needs.

“We welcome everyone’s views on whether our proposals will achieve our aim of building firms’ confidence to offer a wider range of advice and ultimately to help consumers navigate their financial lives.”

PIMFA head of public affairs, Simon Harrington, commented: “The FCA’s decision to clarify and update its requirements for firms delivering ongoing advice services is extremely welcome.

“Giving firms the flexibility to deliver periodic assessments in line with consumer needs will encourage firms to develop new, innovative propositions for different client needs. These proposals - and the accompanying guidance - should give firms the confidence they need to continue delivering high quality financial advice on an ongoing basis.

“While this represents meaningful progress, it is too early for us to judge how firms will respond to the proposals for simplified advice will be greeted as warmly.

“We continue to take the view that it will only be attractive to firms who can offer it in a way that is commercially viable - this means looking at adviser qualifications. We note the FCA’s clarification of its expectations for trainees who have not yet fully qualified on this matter.

“We also note the FCA’s decision to look more closely at trail commission. In doing so, we welcome its intention to properly examine the impact on consumers and firms with these legacy arrangements.

“Whilst we note the FCA’s concern in this area, it is already the case that these arrangements will be subject to regular review by firms to ensure they continue to deliver value for money and good outcomes to consumers. We look forward to working closely with the FCA on this matter over the coming months.”

The consultation closes on 22 May 2026.

This article originally appeared in our sister publication Wealth Investment News.

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