The Financial Conduct Authority (FCA) has announced a set of proposals designed to improve access to financial advice.

The UK regulator said that it will create a separate and simplified financial advice regime which will make it "cheaper and easier" for firms to advise consumers about mainstream investments in stocks and shares ISAs.

The move comes after research from the financial watchdog found that 4.2 million people in the UK hold over £10,000 in cash and are open to investing some of their money.

The authority warned that while keeping a cash buffer is a sensible way of dealing with unexpected expenses, consumers who hold significant amounts of excess cash may be “damaging their financial position, as inflation reduces the value of their savings”.

“Now more than ever, people across the UK should have access to useful and affordable financial products and services which can improve their quality of life and support the economy,” said Sarah Pritchard, executive director of markets, FCA. “These proposals are part of our work to deliver a consumer investment market where people can readily access support and firms aren’t deterred from providing it.”

The FCA is consulting on streamlining the customer ‘fact find’ so that advice is more straightforward for both firms and customers.

It will also explore limiting the range of investments within the new regime so the advice is “easier to deliver and understand”.

It proposed making the qualification requirements for the new regime more proportionate so delivering the simplified advice is less costly for firms and allowing advice fees to be paid in instalments so “customers aren’t burdened by large upfront bills”.

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