View more on these topics

Dame Anne Begg: George Osborne’s ‘advice’ pledge ‘irresponsible’

The Government’s pension guidance guarantee could put people off paying for financial advice, according to Work and Pensions select committee chair Dame Anne Begg.

In his Budget speech, Chancellor George Osborne announced savers would be able to take their entire pension pot as cash at age 55 and people would be entitled to “free, impartial, face-to-face advice”.

However, in the documents published alongside the Budget this commitment was downgraded to “guidance”.

Speaking to Money Marketing, Begg says the failure of politicians to differentiate between guidance and regulated advice could make it less likely people will pay for advice.

She says: “Language is important in both setting a tone and making sure meanings are clear. It is worrying, especially in the financial sector where a lot of work has been done to make sure that advice is properly regulated, transparent and people know what they are being charged.

“To then confuse that with something that is well short of advice is irresponsible. People will have an expectation about what they are going to get and it turns out that is not what they are getting at all.

“There will be more demand for ‘advice’, but will people be willing to pay for it if they think they have been promised something for free from Government?”

In April, Osborne told the Treasury select committee that he used the word “advice” because he had “to communicate in English so people watching knew what he meant”.

However, the following month the select committee’s report on the Budget said Osborne’s speech “could have been better phrased”.


Richard Mein

My Beautiful Career: Richard Mein

What was your first job within financial services? Selling insurance door-to-door for Hambro Life. I lasted six months. It showed me everything that was wrong with the industry: the only driver of success was quantity, which was totally disconnected from appropriateness for the client. I ditched the £20k and the Porsche and went to start […]


FCA: Lenders’ MMR questions are just ‘teething problems’

Over-zealous affordability checks by lenders are just “teething problems” and not evidence of unintended consequences of the mortgage market review, according to the FCA. Since the introduction of the MMR in April, brokers have complained that lenders have gone too far with their affordability checks, with some scrutinising spending on items such as pet food […]

Pensions and retirement planning

CPD: Pensions and retirement planning

The latest edition of Newsbrief counts as 1 hour of structured CPD and covers the regulatory and marketplace changes that took place during June 2014. Visit the Money Marketing CPD Centre to answer 10 multiple choice questions and complete this CPD activity. Just click into your CPD Plan and you’ll find each month’s marketplace changes round-up in your activity list.

China tech and Global Alpha: a new great leap forward

By Robin Geffen, Fund Manager and CEO

Internet giant Alibaba is exactly the type of entrepreneurial company that the high-conviction, top-performing Neptune Global Alpha Fund seeks to invest in. Established just 14 years ago in an apartment in Hangzhou, today Alibaba is larger than Amazon and eBay put together and is challenging some of the most powerful internet companies in the world…

Read more 

Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Well said – The language we use is important especially when the word ‘free’ is used.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm