Source · Select Committees · Work and Pensions Committee
Recommendation 21
21
Acknowledged
Paragraph: 94
The line between advice and guidance is a continuing issue of debate.
Recommendation
The line between advice and guidance is a continuing issue of debate. There is demand for both enhanced guidance and limited advice, but there is reluctance from the industry to operate too close to the advice/guidance boundary and resistance to such services being offered by the Money and Pensions Service, both because of the likely additional cost and regulatory requirements. We recommend that the Financial Conduct Authority uses the definitions below of enhanced guidance and limited advice: a) Enhanced guidance: guidance on the options available which is tailored to an individual dependent on the information they provide, without a recommendation. This is not a regulated activity. b) Limited advice: a recommendation made to an individual based on limited or partial information about them. The Financial Conduct Authority should provide examples to the industry to encourage the wider offering of enhanced guidance and limited advice to the fullest extent allowed by the existing law.
Government response summary AI-generated
The government states that individuals using dashboards will be able to delegate access to MaPS guiders or authorized financial advisers and that the MaPS dashboard will be integrated into the MaPS retirement planning hub to better tailor guidance interventions.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
94
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
We understand that the FCA will be responding to this recommendation separately.
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