The Financial Conduct Authority (FCA) has ruled out putting in place a long-stop for adviser liability, after it found it would unfairly impact consumers who bought long-term products.
The regulator said in its Financial Advice Market Review (FAMR) - a joint project with the Treasury - it will not put a 15-year break on the time complaints can be brought about advice.
It said it had carefully considered the option, campaigned for by the Association of Professional Financial Advisers (APFA) and firms such as Zurich, but found "relatively few" complaints related to advice given such a long time ago.
Putting in place a long-stop would "inappropriately limit protection for consumers on long-term products".
FAMR considered claims data from the Financial Ombudsman Service over the last three years, which showed comparatively few complaints relating to advice provided by independent financial advisers longer ago than 15 years.
An average of 216 complaints per year were this old, of which only 30% were upheld, it said.
Almost half of these (48%) were concerning advice about mortgage endowment products. However, given the historic nature of the problem and given that these were pre-RDR, FAMR believes that there may be a natural decline in the numbers of these complaints, it added.
The FCA and Treasury also said they would look at improving the transparency of the processes and decisions of the Financial Ombudsman Service (FOS).
FAMR has made further recommendations for the FCA to consider in its review of how the Financial Service Compensation Scheme (FSCS) is funded, which will begin in April 2016.
It has suggested that the funding review should explore alternatives to enable advisers to plan costs more effectively.
FAMR was launched in the wake of the government's pension freedom reforms, which allowed all defined contribution savers unfettered access to their savings from age 55.
The government had introduced a free guidance service for those at point of retirement but it thought it important for savers to be able to access regulated advice if they needed.
Data released in January showed almost half of those opting for income drawdown in retirement between July and September last year did so without seeking advice.To make financial advice more accessible, FAMR called on the government to allow consumers to access a small part of their pension pot to redeem against the cost of pre-retirement advice.
This will ensure that consumers can access financial advice at a key milestone in their lives and feel confident in making financial decisions as they approach retirement, the report said.
The last comprehensive advice market review, the Retail Distribution Review (RDR) of 2012, banned advisers from charging for their services through commission received by providers.
As an unintended consequence, many advisers moved upmarket, serving wealthier and more profitable clients, while banks withdrew from giving advice almost completely. This created an advice gap for the mass market.
FAMR sought to address the advice gap by exploring how technological solutions could be used to give advice more cost-effectively.
FAMR now asked the FCA to extend its innovation hub Project Innovate and to establish a unit focused on automated advice solutions.
FCA acting chief executive Tracey McDermott said: "This review has taken place against the backdrop of social and demographic changes which have led to an increasing need for individuals to take more responsibility for their own financial future. But we know that people often find it difficult to engage with financial matters and we need to make it easier for them to do so.
"The package of reforms we have laid out today will help increase both the accessibility and affordability of the advice and guidance to ensure that consumers get the help they really need when they really need it."
Charles Roxburgh added: "At a time when more and more people are seeking financial advice and guidance, we have set out how we can deliver a vibrant financial advice market that works in the interest of all consumers.
"Our recommendations will increase the amount of affordable, high quality financial advice that is widely available so it's easier for people to access it at every stage of their lives."
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