Advisers have reacted with scepticism to the government's plans to change the definition of financial advice, calling into question whether it would be effective and warning it could even attract more scammers to the sector.
The government has proposed changing the definition of advice from the one anchored in the Regulated Activities Order (RAO) to the one found in European regulation Markets in Financial Instruments Directive (MiFID) - effectively narrowing the scope of what constitutes regulated advice. In the main, MiFID requires advice to be of a personal nature whereas the RAO does not. The government said it felt narrowing the definition would encourage advisers to offer more people "advanced guidance" services, which they would be able to charge for - albeit fees would be lower than for regulated adv...
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