On 11 April 2017, the FAWG published the report of its inquiries, based on over 1,000 surveys of consumers on their understandings of the meanings of 'advice' and 'guidance', as well as numerous interviews with consumers.
Accordingly, on 11 April 2017 the FAWG presented the findings of its inquiries, based on a comprehensive review of relevant academic literature, with further market testing scheduled during 2017.
(198) In its April 2017 progress report on the implementation of these recommendations, the FAWG reported that consultation was underway with firms and industry associations to develop this regulatory guidance which would include guidance for firms to contact consumers to encourage them to evaluate their financial circumstances, without such actions constituting the provision of a 'personal recommendation'.
(200) In response, in March 2017 the FAWG noted that the FCA and TPR were developing a fact sheet to guide employers and pension fund trustees in providing guidance without being subject to regulation.
As Part 3 explained, the Financial Advice Working Group (FAWG) has formulated several well-reasoned solutions for implementing the recommendations from the Financial Advice Market Review.
The explanation (with the use of an illustrated diagram) of when 'regulated financial advice' is, and is not, being provided (211) in the FSLA Bill represents, similarly to the FAWG's development of descriptors of 'advice' and 'guidance', a helpful clarification of the parameters of financial advice regulation.
"This came out of the commissioners retreat last week," said long-time FAWG Chairman Steve Johnson, Pennsylvania deputy insurance commissioner, referring to the Executive Committee meeting held last week in South Dakota.
"It is going to be a learning experience for all of us if we move forward with these charges...It is intended to be an interim step in the process (to PBR implementation,) but that will take a little time, and we already have that mechanism of FAWG," Torti told Indiana Commissioner of Insurance Stephen W.
The Indiana commissioner had expressed reservations about FAWG becoming a captives bureaucracy, but wants to participate in the process.
FAWG is charged with supporting, encouraging, promoting and coordinating multi-state efforts in addressing potential solvency problems, including identifying industry trends.
If nondomiciliary states restrict a troubled insurer's activities, the domiciliary regulator has little choice but to seize the company and implement the actions required by FAWG
. The collective resources and expertise of the various state insurance departments and the NAIC also are more efficiently coordinated and focused on a troubled insurer through this process.