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D2C providers: Budget guidance guarantee must be delivered online

The Government’s at-retirement guidance guarantee announced in the Budget will inevitably be delivered online to cope with volumes, D2C providers argue.

Last month experts told Money Marketing that the Government was concerned about creating a “robust” system to deliver on Chancellor George Osborne’s guarantee of face-to-face guidance for everyone reaching retirement by April 2015.

Stockbroker and D2C investment platform Charles Stanley Direct says the guarantee will need to be delivered online or risk failure.

Head of Charles Stanley Direct Rob Hudson says: “It will be an online solution. I can’t see any other way. And it may also help harden the FCA’s views on exactly what guidance is.”

Simplified advice and DFM provider Money on Toast adds that an online solution will be needed to cope with volumes.

Founder Charlie Nicholls says: “I think the guidance process will absolutely have to start online because of the volume of people that will use the service.”

Next week the Treasury closes its consultation on the pension reforms announced in the budget. Trade and consumer bodies have committed to input into the consultation.

Hudson and Nicholls were speaking at a London event hosted by Altus. 

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. If guidance is offered only online, that will guarantee scheme’s failure as ipso facto the hundreds of thousands of retirees who don’t have a computer and don’t use the internet, will be denied “free, impartial (face-to-face) guidance”.

    Better, the Treasury civil servants tell George Osborne he must retract his Budget speech promise as it’s impracticable to fulfill, than to permit potential guidance providers to diminish the specification for what will be offered to suit their business models.

  2. If guidance is offered only online, that will guarantee scheme’s failure as the hundreds of thousands of retirees who don’t have a computer and don’t use the internet, will de facto be denied “free, impartial (face-to-face) guidance”.

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