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| Robo-money advice under the microscope | |
| (about 1 hour later) | |
| Computer algorithms that offer financial advice will be studied as part of a review into the money advice sector. | Computer algorithms that offer financial advice will be studied as part of a review into the money advice sector. |
| So-called robo-advice uses computers to help individuals find products that suit their finances and attitude to risk. | So-called robo-advice uses computers to help individuals find products that suit their finances and attitude to risk. |
| They are used relatively widely in the US. | They are used relatively widely in the US. |
| A consultation, starting on Monday, will see the Treasury and City watchdog take views about the cost of advice. | A consultation, starting on Monday, will see the Treasury and City watchdog take views about the cost of advice. |
| "There is lots of innovation going on already," said Tracey McDermott, acting chief executive of the Financial Conduct Authority (FCA). | "There is lots of innovation going on already," said Tracey McDermott, acting chief executive of the Financial Conduct Authority (FCA). |
| "We need to assess whether or not [robo-advice] can provide the services that people need, and to ensure that the regulatory and legal framework allows this to happen." | "We need to assess whether or not [robo-advice] can provide the services that people need, and to ensure that the regulatory and legal framework allows this to happen." |
| The suggestion is that automated robo-advice could allow people to make decisions without having to pay more for a dedicated financial adviser. | The suggestion is that automated robo-advice could allow people to make decisions without having to pay more for a dedicated financial adviser. |
| Complexity | Complexity |
| The consultation is part of an inquiry that will consider consumers' access to financial advice, and particularly the gap for those who do not have significant wealth. | The consultation is part of an inquiry that will consider consumers' access to financial advice, and particularly the gap for those who do not have significant wealth. |
| It comes after the change in pension rules, which came into effect in April. | It comes after the change in pension rules, which came into effect in April. |
| The changes, allowing access to pension savings, has prompted questions about the suitability of advice. | The changes, allowing access to pension savings, has prompted questions about the suitability of advice. |
| The review will consider all types of retail financial products including pensions, savings, mortgages, and insurance. It will publish its findings before next year's Budget. | The review will consider all types of retail financial products including pensions, savings, mortgages, and insurance. It will publish its findings before next year's Budget. |
| Ms McDermott told the BBC that as people were living for longer, long-term financial decisions were becoming more complex. She said that many people needed to be encouraged to engage with money services for their long-term financial health. | Ms McDermott told the BBC that as people were living for longer, long-term financial decisions were becoming more complex. She said that many people needed to be encouraged to engage with money services for their long-term financial health. |
| Harriett Baldwin, economic secretary to the Treasury, said: "We are exploring what more can be done to make sure consumers can access high quality and affordable advice so they can make informed decisions with their hard-earned money." | Harriett Baldwin, economic secretary to the Treasury, said: "We are exploring what more can be done to make sure consumers can access high quality and affordable advice so they can make informed decisions with their hard-earned money." |