LONDON, Dec 8 Reuters Britain has proposed simplifying rules on financial advice to allow banks, insurers and investment firms to give information to less wealthy customers without having to comply with stringent safeguards that bump up fees.

The government had said it would review and clarify the regulatory boundary between formal financial advice, which is heavily regulated and thus making it more expensive, and cheaper forms of information and support.

These proposals aim to create a regulatory system where a range of commercially viable, high quality models of support will be in place enabling consumers to access better support, the Financial Conduct Authority FCA said in a statement on Friday.

Regulators are keen that a wider range of people get financial information following a string of misselling scandals going back decades. Only 8 of UK consumers received full financial advice last year.

The gap between holistic financial advice that is unaffordable for many, and guidance that is free to access but not personal to the consumer, is simply too vast, Britain39;s financial services minister Bim Afolami said in a statement.

A middle ground that is affordable and accessible is needed, he said.

The FCA and the finance ministry have proposed further clarifying when firms can give customers support without it being deemed regulated financial advice.

It also proposes allowing firms to provide support tailored to groups of people in similar circumstances.

There…