The regulator, which published its business plan for 2016/17 this morning, accepted a recommendation from the Financial Advice Market Review to support firms with automated advice models.
The Financial Conduct Authority will back so-called robo advice by setting up an ‘advice unit’ in the next 12 months.
The regulator, which published its business plan for 2016/17 this morning, accepted a recommendation from the Financial Advice Market Review to support firms with automated advice models.
The FCA also said it will support innovative firms through Project Innovate with a ‘Regulatory Sandbox’ to give firms a 'safe space' to test products without having to meet all regulatory requirements.
The FCA explained: “We want more firms to embrace innovation. One of our recommendations is for industry to consider setting up a not-for-profit company to act as a sandbox ‘umbrella’, and we look forward to their response.
“In the meantime, we hope our sandbox will speed up the time it takes for new and innovative products to reach market and start benefitting consumers.”
Budget wise the FCA said it will require £519.3m in the next 12 months, with investment, mortgage and general insurance intermediaries having to find 28.4% of that total.
This represented an increase of 7.8% on its £481.6m budget last year, which the regulator attributed to taking charge of consumer credit.
