Advisers say the Money Advice Service is a “flawed concept” which cannot be fixed by the arrival of a new chief executive.
The MAS has appointed Department for Work and Pensions director of private pensions Caroline Rookes as its new chief executive replacing Tony Hobman.
Rookes will be paid £140,000 a year, compared to the £250,000 salary paid to Hobman as part of a total £350,000 pay package. FSA chairman Lord Turner admitted in June that Hobman’s pay was set too high. Hobman resigned from the MAS in July and will leave on 31 December. Rookes will take up the role in the New Year.
Clearwater Financial Planning managing director Duncan Carter says: “I do not know why this job has gone to someone from within the public sector with perhaps very little experience of what goes in the real world. I expect we will get more of the same but for a slightly cheaper salary.
“Citizens Advice does a fantastic job and it should be given greater funding. The MAS is a flawed concept and I do not think it can be turned around. The MAS is just plastering over the cracks.”
Facts & Figures Financial Planners managing director Simon Webster says: “£140,000 does seem very generous remuneration for very little work. The MAS is a flawed model and she has a huge task ahead of her. I do not think she has a snowball’s chance in hell of turning the service around.”
Thameside Wealth director Tom Kean says: “We need someone from a commercial background who feels the pain of spending other people’s money. We are paying for this and yet we have no say. It is time the MAS was funded a different way.”