The Financial Conduct Authority, commonly referred to as the FCA, announced a new set of guidelines last week entitled targeted support, which aims to help individuals make better and more informed decisions about their finances.
What will Targeted Support Involve?
This new package of measures will enable financial institutions such as banks to suggest helpful options to their customers, based on what seems to work well for other people in similar situations. This may include suggestions such as how and where to invest money for the future, as well as pension recommendations according to the BBC.
However, the financial institutions will continue to have to stop short of giving full personalised financial advice. Independent financial advisors can be notoriously quite expensive, however, so it is hoped that this new campaign will be perfect for providing customers with appropriate financial advice, without eating into their cash savings.
Of course, financial institutions will have to ensure compliance with the recommendations of the FCA. Compliance is, of course, an area of key importance and FCA compliance consultants such as //www.adempi.co.uk/ can support banks or other financial institutions with all aspects of compliance.
What are the Benefits?
It is thought that this new support campaign will enable people who have some cash savings to be supported in investing, but who aren’t sure where to begin or what options would work best for their money.
Any advice given will be based on what works well for people in similar situations, so there will be evidence behind any recommendations.
