One of the charity’s first goals was to establish a FairLife Mark for IFA Guidance. The ambition of the work was to help to secure affordable and suitable advice for consumers of lower and middle incomes.
The IFA market works well for clients who have an asset base sufficient to justify bespoke advice. Clients with an asset base below this threshold face a stark choice of paying for advice that could be poor value or not having financial advice at all.
It is widely accepted that the problem exists, with the value of the asset threshold having been debated by the industry for several years. The issue is known as the advice gap. The FairLife charity researched ideas for the FairLife IFA Guidance Mark to target this issue.
In August 2013 other product areas were prioritized while the precise legal definitions of the words advice and guidance were reviewed. The charity continued to expand on the concept, working actively with industry where possible, whilst waiting the outcome. Following the recent publication of the Financial Advice Market Review, the FairLife charity will be revisiting this mark in due course.