The financial services industry needs a simplified regime within which it can "talk the consumer language", in order to attract people shut out by the retreat of bank advice, BlackRock has suggested.
Speaking at the launch of BlackRock's Investor Pulse Adviser Survey last week, head of UK retail Tony Stenning said the industry had created a "disconnect" between its language and what consumers are looking for, which needed to be mended to attract more consumers to financial advice.
He also said that simpler processes and products would make it easier and cheaper to service lower-net worth individuals, as processes would be more efficient.
The UK had a lot to learn from countries such as Australia and the US, where simpler models already exist, he suggested.
Stenning said: "It was really evident when we looked back at what was challenging consumers and what was on their minds - such as the cost of healthcare - it was about the immediacy of where they have to spend their money.
"And yet, quite often we address inflation concerns and things that we think are on their minds. There has been a disconnect between our language in terms of the products and the outcome.
"What you'll see over the next few years is a focus on what is the consumer trying to achieve, can we help them achieve that in a very simplified way, more importantly can the regime itself go one above products, can that be simpler."
He added: "The ability to say I've spoken to, I've considered, I've googled, spoken to some friends, this is what I think...from an adviser's perspective to help consumers in that regard, at the moment, you have to do a full know your customer and documentation check and that costs a lot of money.
"I think there is a lot we can learn from other countries like Australia and the US. There is a simplified regime and there are ways of helping people get to that answer."
BlackRock's survey had shown that consumers are more confident about their future and about achieving their financial goals when seeing an adviser. And, in an endorsement of the industry's growing professionalism, most investors said they were confident and happy with the service they were given.
The FCA has recently launched a thematic review into simplified advice to find out how simplified advice models were structured to address people's needs and how firms went about helping consumers choose products.
It said it was entering the review with an open mind but wanted to make sure good customer outcomes are being delivered.
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