The Financial Conduct Authority said it has carried out the advice guidance boundary review to "unlock innovation" so people are able to get the support they need.
Speaking at an event, FCA chair, Ashley Alder, described the review as “incredibly technical” as “unpicking the interplay between our own rules, domestic legislation and consolidated EU law is hard”.
But he said the review’s aim was “simple” as it looks to unlock innovation so people can get support in easy-to-access ways and at prices they can afford, so they have the confidence to make the most of their money.
In doing this, the FCA can boost growth for personal finances, for those seeking investment, and for the UK as a whole.
Alder pointed out this goal underpins the regulator’s framework on value for money for workplace pension savers.
This seeks to ensure the £130bn a year saved into these schemes works harder for people.
“A focus on value rather than costs should help providers invest in assets that deliver greater long-term returns,” he said.
Through these and a raft of other initiatives, Adler stated that the authority is looking to shift its national view of risk.
“We’re looking forward to continued collaboration with colleagues, both domestic and global, as we seek a common goal: capital markets that deliver the returns people need, and the investment that growth requires,” he concluded.
Mobilising interest
Elsewhere, Alder acknowledged that effectively mobilising the domestic savings necessary to grow UK businesses was a “hard task”.
“When we talk about listings regimes, stamp duty, accounting rules, or even initial public offerings, those outside this room could be forgiven for thinking we’re speaking in a foreign language, switching off as a result, unsure how any of it matters to them,” he explained.
“So, we need to make a case for it to matter to a far wider section of the population.”
Alder also explained that this issue is particularly prevalent in the UK compared to other countries, pointing out that, in the UK, the proportion of households directly owning stocks and shares has halved in decades.
Citing New Financial, Alder explained that just 4.4 per cent of UK pension funds assets are held in domestic equities.
“That has a huge opportunity cost for capital hungry businesses, and for the wider economy,” he said.
Alder also pointed out that this creates a gap for individuals as well as Barclays reports that 13mn UK adults are missing out by holding £430bn in cash savings which could be put to more productive use.
tom.dunstan@ft.com
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