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FCA to expand robo-advice unit to guidance propositions

FCA to expand robo-advice unit to guidance propositions

The FCA will extend its robo-advice unit to include firms developing guidance solutions.

The advice unit was established last year following the Financial Advice Market Review (FAMR). It currently helps companies develop automated advice propositions by offering some regulatory support. 

The FCA now plans to expand the project to help firms providing guidance rather than just regulated advice. This would see it help firms that do not make a recommendation at the end of the process. 

Speaking at the Innovate Finance Global Summit, FCA executive director of strategy and competition Christopher Woolard said the regulator wanted to keep developing its approach to innovative financial services firms.

'The advice unit, which currently assists firms developing automated advice models will now have a broader remit, taking in firms within the mortgage, general insurance and debt sectors, as well as firms that want to provide guidance instead of regulated advice,' he said.

Woolard added that the FCA wanted to ensure its work on innovation became a key part of its work. 

'In a way, our journey has mirrored that of the firms we support: from start-up to a more established enterprise. Over time, we want some of what we do in our innovation work to become the norm in how we operate,' he said. 

Of 19 firms that applied in the first round of the advice unit entries, 9 were successful. 

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