The Association of Independent Financial Advisers has welcomed the Thoresen Review and says money guidance presents an opportunity to educate consumers about their financial needs.
Director general Chris Cummings says the industry and government must work together to engage consumers and encourage them to consider their long-term financial well-being.
He says: “A better educated public will then realise the value of professional financial advice and understand the advice given to them.
“As Thoresen states in his report this service will be sales free. The money guidance service will provide a basic level of financial information and act as a signpost for consumers to access more detailed personalised financial advice. We are pleased that the Thoresen Review has recognised and understood the true value which can be gained from the intermediary community.”
Cummings says he agrees with the proposal to use the FSA levy to raise funds from the industry.
He adds that this will keep administration costs to a minimum but will ensure charges are proportionate to the benefit received by sections of the industry.
Cummings says: “We also support the inclusion in funding the service of those governed by the Consumer Credit Act and National Savings and Investments.
“We look forward to giving our support to the pathfinder programme.”