The regulator has appealed for input from the advice profession as part of the review.
The FCA’s official ‘call for input’ document listed concerns about the way the industry works.
It read: “As set out in our analysis of the investment sector, we have some concerns that, in parts of the market, there may be problems with conflicts of interest, poor treatment of consumers and misleading or confusing communications.
“Consumers can struggle to assess the cost of advice and may overpay for services which they do not need.”
The regulator is seeking input on its proposed approach to reviewing the Retail Distribution Review (RDR) and the Financial Advice Market Review (FAMR).
The review will consider whether these initiatives have been successful in achieving their objectives and will look at what consumers want from the market and how the market works to deliver this.
It will also consider how new market trends and developments might affect the future development of advice and guidance services.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA said: “Millions of people look for help and support in making financial decisions every year and the aim of the RDR and FAMR was to help the market develop the right advice or guidance service consumers need to make those decisions.
“Consumers and the market are changing rapidly, as technology, employment patterns and inter-generational challenges change the way consumers interact with financial services.
“As well as looking at how the market has evolved since RDR and FAMR, it’s important that our work looks ahead to see how we ensure that this important sector works well in the future.
“We want the market to deliver a range of good quality, affordable advice and guidance services that meet consumer needs.”
The FCA is seeking initial feedback by the 3 June.
The watchdog also revealed it will be holding a number of ‘stakeholder events’ and will collect further data through consumer research and surveying a sample of firms.
It intends to publish its final report in 2020.
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