Financial Conduct Authority
- the ‘advice gap’
- Advice Guidance Boundary Review (AGBR)
- 24% of consumers has used information or guidance
- 7% of UK adults digitally excluded - cannot help them
- 0% of firms have formal pot size thresholds for new customers
a. 8% of adults reported taking financial advice over the previous year – just 4.4 million consumers in 2022. b. Adults with over £250,000 in investible assets were the most likely to have received advice in the last 12 months (37%, compared to 17% of those with at least £10,000, and 2% of those with less than £10,000), reflecting the relative value of advice to different consumers as well as the cost. c. Consumers do not always believe they would benefit from advice. 60% of consumers who had not received financial advice over the last 12 months but have at least £10,000 in investible assets said they did not need advice.
Consumers think that guidance can be helpful for understanding ‘the basics’. However, guidance often does not go far enough to help consumers feel confident to make a decision as they value a personal recommendation, which is not available through guidance