Millions to be offered free financial advice under new rules
Banks and pension companies will be allowed to prompt millions of their customers with 'ready-made suggestions' as to how they manage their money in a major policy shift by regulators.
The Financial Conduct Authority is unveiling proposals on Monday for a 'targeted support' regime that could help the majority of people who are unable or unwilling to pay the costs for full personalised advice.
Firms will be allowed to send suggestions to their customers without doing a full assessment of individual circumstances, which is not allowed at present.
The reforms are aimed at helping people to make better financial decisions, whether nudging high savers into stock market investment or alerting people to the danger of depleting their pension pots too quickly.
Just 9 per cent of adults get conventional authorised advice, leaving the vast majority making complex financial decisions by themselves and potentially making costly mistakes.
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