FCA working group recommends 'five financial rules of thumb'

Follows focus group and consumer research

Tom Ellis
clock • 2 min read

The regulator's Financial Advice Working Group (FAWG) has proposed five financial 'rules of thumb' and 'nudges' designed to help people meet common personal finance needs.

Based on the common phrases 'five fruit and veg a day' and 'a rule of thumb', the proposed 'Financial Five' is a result of one of the Financial Advice Market Review (FAMR) recommendations, which suggested the Financial Conduct Authority's working group design a set of easy-to-follow personal finance rules. The rules of thumb are meant to be memorable phrases, while a nudge is a "timely prompt from a trusted source" to remind people to act on the rules and make financial decisions.  For each rule of thumb the FAWG has identified an "illustrative nudge" to help people take action in ord...

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