The regulator has revealed that nine companies were successful in applications
for support from its Advice Unit. These firms want to bring automated advice models to the market at scale.

Eight of these businesses are established in the financial services sector.

Christopher Woolard, FCA director of strategy and competition, said: “The nine successful firms have begun the process of engaging with the Advice Unit, who will seek to provide regulatory feedback on the automated advice models they are developing.”

Eleven firms were rejected in the first tranche of applications.

Mr Woolard said the Advice Unit’s work will yield “lessons for everyone – from regulators to firms”.

He said: “Technology was identified as a means of giving consumers more access to affordable advice, so, as part of Project Innovate, we established the Advice Unit as a way of supporting firms developing automated models which seek to deliver lower cost advice.”

He emphasised that the unit is open to firms “of all shapes and sizes”.

Firms that failed with applications have received feedback on why they did not meet the eligibility criteria, and have the option to reapply in future.

Mr Woolard said the FCA would be sharing publicly what it learns from the Advice Unit’s work to help advance automated advice model development.

He said: “The FCA is genuinely committed to harnessing the power of innovation in the interests of consumers. And the work that we do is focused on delivering better outcomes for the markets we regulate.

“It’s been almost two years since we started Project Innovate. In that short time we’re seeing attitudes shift. With the pace of change as fast as it has been, the financial services industry of the future is hard to predict.

“We’re beginning to see firms large and small experimenting with new ideas, new innovations. Seeking to offer different services to consumers. To create value for their customers and ultimately their firm.

“This is how effective competition should work, and something we will continue to promote through Project Innovate.”

The FCA will begin to publish resources on its website for all firms developing automated advice models in early 2017.