Worry code changes slipping under radar
The Code Committee revealed a draft version of the revised code in late January, after a request for submissions.
The new version tries to tackle the problem of advisers being restrained in offering limited advice to clients who do not need a full financial plan. Many advisers find the paperwork burden too heavy to make piecemeal advice worthwhile.
"Personalised advice on discrete issues [is] either proving costly to provide or not provided at all," the committee said. "The overwhelming impression conveyed through the consultation process is that the transactional advice mechanism has not been effective in improving consumer access to personalised advice."
It wants to replace the "transactional advice" concept with a wider "limited advice" idea, with relief from the need to assess suitability when advice is requested on a particular product, without a transactional element.
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