The UK’s main financial watchdog, the Financial Conduct Authority (FCA), has issued proposals designed to improve investors’ access to financial advice.

They include the creation of a separate and simplified regime for firms to advise consumers about mainstream investments within stocks and shares individual savings accounts (ISAs).

The proposal comes on the back of an FCA survey which found that 4.2 million people in the UK with more than £10,000 in cash savings are open to investing some of it.

However, the cost of receiving in-person financial advice may dissuade people from investing.

“Now more than ever, people across the UK should have access to useful and affordable financial products and services which can improve their quality of life and support the economy,” said Sarah Pritchard, executive director of markets at the FCA.

“These proposals are part of our work to deliver a consumer investment market where people can readily access support and firms aren’t deterred from providing it.”

The proposals, which will be issued to the market for consultation, focus on a number of areas including streamlining the customer ‘fact-find’ to make advice more straightforward, limiting the range of investments within the new regime, making qualification requirements more proportionate, and allowing advice fees to be paid in instalments.

The proposals do not make any direct reference to technology and the use of digital technology specifically to improve access to and reduce the cost of financial advice. However, the watchdog has issued a number of warnings in recent months about the use of technology by firms offering investment or trading services to consumers. These include the gamification of various stock trading apps and the promotion of investment services via social media platforms.

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