The ‘advice gap' post-Retail Distribution Review (RDR) is a major cause of concern and must be monitored closely by regulators, the Association of British Insurers (ABI) will say later today.
The trade body warned while its members were braced for the huge changes to financial services the existing consumer advice gap was in danger of increasing after 1 January.
Speaking at the ABI RDR conference later today, Maggie Craig will say: "The changes to financial advice are a major step in the right direction to give people more clarity and transparency around where their money is going and increase confidence that they are getting good advice from professional advisers.
"Financial advice plays a crucial role in helping people make good financial decisions, so we remain concerned that an unintended consequence of the reforms is that the existing consumer advice gap may widen.
"The regulator must keep this front of mind and be prepared to work with the industry to improve consumer access to appropriate financial advice."
The trade body added the reforms would increase transparency for consumers buying investment products, such as pensions, and providers had done a lot of work to get in shape for 1 January 2013.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
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