The Financial Conduct Authority has launched a consultationon proposals to make it easier for firms to provide simplified forms ofindividualised financial advice to consumers. While the initiative is primarilyaimed at the advice and wealth management sector, brokers moving intoinvestment advice, portfolio tools, or hybrid models could also be affected.SingaporeSummit: Meet the largest APAC brokers you know (and those you still don't!).In April last year, theFCA proposed changes to investment cost disclosures affecting around 12.6million UK adults. The aimwas to simplify information and reduce compliance burdens while retaining keycost details.FCA Aims to Expand Advice AccessThe FCA said simplified advice could help people withstraightforward financial needs. It does not require a full review of allaspects of a person’s finances, making advice more accessible and lower incost.[#highlighted-links#]Sarah Pritchard, Deputy Chief Executive of the FCA, said“for too long the support people need to make important financial decisions hasbeen out of reach for many,” adding that the regulator wants “a market thatprovides good quality, lower cost simplified advice” alongside broader support.She said the FCA aims to “see more people gettingsupported,” while assessing if the proposals will “build firms’ confidence tooffer a wider range of advice.”Simplified Advice Framework Faces Limited AdoptionThe FCA noted that firms are already allowed to offersimplified advice, but adoption has been limited. To address this, it isproposing a set of targeted changes while maintaining consumer protections. These include simplifying and consolidating the suitabilityframework into a single set of rules and expectations and clarifying existingflexibilities, with an expectation that advisers consider “sufficient”information when giving advice.Trail Commission Discussion Opens, Rules UnchangedThe proposals also aim to make suitability communicationsmore concise and focused on consumer needs. In addition, the FCA is proposingchanges to ongoing advice, moving from fixed annual reviews to flexible,needs-based assessments. Alongside the consultation, it has opened a discussion ontrail commission to modernise rules and reduce potential consumer harm. Adviserqualifications and charging rules will remain unchanged. The regulator noted earlier steps to expand targeted supportfrom April and said many consumers will still need personalised advice,describing the consultation as the final stage of its policy work to improvethe advice market.This article was written by Tareq Sikder at www.financemagnates.com.