REGULATORY LEVELS AND ACCESS TO ADVICE

That this House notes that the recent changes to pensions and savings legislation have meant consumer access to clear and affordable financial advice has become more important; further notes that recent research by the Association of Professional Financial Advisers found that 69 per cent of its professional body had turned away potential clients in 2015, with the most common reason being affordability, where services offered were not economic for clients' needs and circumstances; believes that to simply reduce the cost of advice is not sustainable, nor an answer to such a problem in this sector which has borne the brunt of the impact of the current regulatory levies system which has led to a much higher level of costs for consumers; and calls on the Government and the Financial Conduct Authority, in the wake of the Financial Advice Market Review, to ensure the forthcoming Financial Services Compensation Scheme levy approach examines all possible solutions, including a product-based levy and a whitelist of products, to support the creation of a more sustainable advice sector that is well placed to innovate and offer affordable advice to a broader range of consumers.