Fading away: Is the MAS being erased from Treasury thinking?

MPs, consumer groups and advisers have raised questions about the future of the Money Advice Service after it was overlooked by the Treasury to deliver pensions guidance next year.

Last week, the Treasury said Citizens Advice will provide face-to-face sessions while The Pensions Advisory Service will run the telephone service.

The Treasury is building the online guidance, with the MAS reduced to providing expertise behind the scenes.

MAS was expected to play a key role in delivering guidance sessions and had been working on how to build a website and possibly deliver face-to-face sessions.

Instead the organisation has been dealt a hammer blow by its much-reduced role, which was only communicated to the MAS last week.

The Treasury says there was a procurement process and it chose Citizens Advice for its bureaux network and existing capability.

It says the MAS still has a valuable role to play behind the scenes, with staff seconded to the Treasury. But serious questions are now being asked about whether the quango, whose raison d’etre is to offer money guidance, should be scrapped altogether.

Scathing investigation

After a scathing Treasury select sub-committee investigation into the service last year, the MAS is under a Treasury-commissioned independent review.

Experts say the investigation, led by former Consumer Focus chair Christine Farnish and expected to publish later this year, may have been a factor in the Treasury decision.

In addition, Treasury select committee chair Andrew Tyrie wrote to Chancellor George Osborne in July expressing “serious concerns” about the role of MAS in guidance.

Tyrie says MAS being dropped is “a big step in the right direction”, although the TSC still wants the Farnish review to consider whether to abolish MAS as a statutory body.

Moneysavingexpert.com founder Martin Lewis says: “This is a shaky moment for the MAS.

“It is an interesting move [by the Treasury] and it has to be coupled with the Farnish report. The report is likely to follow similar lines to what the TSC has said, and people like me have said, which is that the MAS is not a good use of this type of funding.”

Labour MP George Mudie, who led the Treasury sub-committee investigation into the MAS, says he is “delighted” the organisation has not been handed responsibility for delivering pensions guidance and believes it is a sign the Farnish review could scrap the quango.

He says: “It is good news that someone has had the courage to give the pensions guidance service to a good established charity.

“I was downhearted at the Treasury review because it had every indication it was going to give MAS the green light to continue along present lines. This is such a brave step for a Government department to take.

“I keep my fingers crossed that they deal with other problems to do with MAS just as objectively.”

Fairer Finance managing director James Daley says: “It is back to square one for MAS. It has been struggling to justify its existence since it was formed but the pensions guidance regime gave an obvious shape to its purpose. It was the obvious organisation to build and operate the guidance. The industry is going to start asking ‘what are we getting here and what results is it delivering?’”

TSC member and Conservative MP Mark Garnier says: “Is this a final nail in its coffin or just a blow? The MAS was around long before guidance so it would have been an add-on to what they were doing.

“But if you think it’s the sort of thing Citizens Advice could do then why isn’t the MAS doing it as well? There are questions about why the Treasury hasn’t awarded it to MAS as it was an obvious choice.”

Fellow TSC member and Labour MP Andy Love says: “The MAS has put a brave face on but clearly this is a snub.

“It shows some disarray between the Treasury and the bodies involved and I worry with these type of late changes how smoothly this process will go. MAS needs to think carefully about how it fits in now.”

Future of MAS

It says its website will help people to put their retirement savings in a “wider context”, such as using private pensions, other investments and long-term care needs.

Second, it is launching an annuity comparison table next month providing real-time provider information. It expects the guidance guarantee to point to this tool.

Thirdly, the MAS is continuing to develop its directory of regulated advisers for next April, which will help signpost people to advice after they have received guidance.

But others believe the MAS should now shift its focus away from money advice and focus on areas where help is needed.

Lewis says: “I am not a fan of a lot of what the MAS does and has done. I’ve called it crap in the past.

“The service has improved but I still believe the brand building of its website is not a good use of public money. It should be focusing on gap provisions – people where there is no provision for them – instead of trying to build a mainstream brand to compete with everything else out there. That has always been my perspective.

“The MAS in itself isn’t bad but a lot of what it does is a waste of money.”

Speaking in a personal capacity, Association of British Insurers director-general Otto Thoresen, who chaired the 2008 review that created MAS, says handing guidance to Citizens Advice and TPAS fits with MAS’ original vision. He says: “If you asked me three years ago there was a level of frustration about how the industry can influence its spending. I think that’s changed.

“We are moving away from a model that didn’t work on a partnership basis to one that is working on a partnership basis. The idea now is not to reinvent what can already be done well by other organisations. That’s positive.”

The MAS has a budget of £81.1m for 2014-15, with £13.1m spent on marketing, which is directed from the overall FCA budget.

Citizens Advice chief executive Gillian Guy has previously hit out at the “colossal” MAS marketing spend and MPs have branded the marketing strategy “misguided”.

Guidance regime

The charity will receive money from providers and advisers under the guidance levy, with details to be revealed shortly. But there are concerns over whether Citizens Advice has the expertise to deliver such a vast service within six months.

The organisation points out it had 150,000 people come to its bureaux with pensions problems last year. It has 340 bureaux across Britain, staffed with 28,000 employees and volunteers.

It is also launching a training programme so its “advisers” are ready to offer guidance by next April and could start a recruitment drive.

The guidance will be rolled out in several soft launches and Citizens Advice will work on a signposting system to direct people to regulated advisers, but the details of how this will work in practice are unclear at this stage.

Citizens Advice will also act as a triage that can direct individuals to TPAS, face-to-face guidance at its bureaux or online.

A separate brand will also be developed to front the guidance sessions, launching yet another financial “advice” brand into the market alongside TPAS, MAS and Citizens Advice.

In a series of amendments to the Pension Schemes Bill, published this week, the Government proposed a statutory definition of what pensions guidance means.

It also unveiled a new criminal offence with a prison sentence of up to one year for falsely providing Treasury guidance, alongside new rules which mean the FCA could intervene if Citizens Advice or TPAS prove not to be up to scratch.

Despite the extra clarity there are still a number of outstanding issues, such as concern about take-up and the size of the provider or adviser levy.

Jacksons Wealth Management managing director Pete Matthew says: “The guidance regime is really half-baked. We are still waiting to see what it is going to look like. The Treasury has had six months to get it right and it is still very much up in the air.”

Adviser views

Page-Tim-Page Russell-2014-500x320.jpg

Tim Page, Director, Page Russell

This raises a big question over the future of MAS. I would hope for the benefit of levy payers that the Treasury comes to a swift decision over whether this quango continues. I hope it doesn’t. The worst scenario is the MAS carries on spending everyone’s money but, because they are out of the guidance picture, they become even more irrelevant.


Robert Reid, Managing director, Syndaxi Chartered Financial Planners

We now need to ask whether the MAS should exist at all and where to put the money. It could go to Citizens Advice.

Why reinvent the wheel? I never agreed with the creation of the MAS in the first place. It was an ego-trip for Gordon Brown and Otto Thoresen. We have wasted a lot of money here and the Government has a duty to deploy it more sensibly.

Should the Money Advice Service be scrapped?


Against – Jackie Spencer

The MAS continues to provide information and signposting for people making decisions about their retirement and pension options. The Government’s guidance service will focus primarily on helping people make decisions about their defined contribution pension schemes.

In addition to help with budgeting, our new retirement content has guidance for people across a wide range of issues as they approach retirement and later life, and can help them put their pension savings into a wider context, including private pensions, their state pension entitlement, and alternative sources of income – such as investments and the equity they have in their home. We can also help them think about long-term care needs – for example, what they may be entitled to from the state and the options available to them to supplement that provision.

We will be launching a new annuity comparison table that will provide real-time information, with a live comparison of indicative provider quotes, based on a limited range of financial, health and lifestyle questions.We are aiming to have the new comparison table ready to launch next month, which will enable the guidance guarantee to signpost to it, offering customers a free and impartial resource that will cover the entire market.

We are also developing a directory to help people find a regulated retirement adviser if they require more specialist help and a specific product recommendation. The Treasury is looking to us to deliver this by April as an important part of the overall guidance package. So our enhanced retirement information will augment the advice that will be available to customers who are making important decisions about how to manage their finances as they approach retirement and beyond.

Jackie Spencer is pensions and retirement expert at the Money Advice Service


For – Martin Bamford

The Money Advice Service should be scrapped today. No waiting for the outcome of the Treasury review, no second, third or fourth chance to get things right. Just lead this failed quango into a quiet corner of the barn and put it out of its misery.

That the Treasury has no confidence in the MAS to play a role in delivering pension guidance sessions from next year is about as damning a judgement of the organisation as could be. If the MAS was a jilted boyfriend, the Treasury would be the girlfriend saying: “It’s not you, it’s me.”

Perhaps if it had spent less on vanity advertising and more on guidance delivery, it could have succeeded. Perhaps the MAS could have survived if it had been created based on honest and open industry consultation, rather than morphing like an out-of-control and power hungry corporate beast from a small department at the regulator. Maybe if its chief executive had a little more political sense and had managed not to alienate the IFA profession with ill-informed opinions about ethics, and then a poorly delivered attempt at an apology, the MAS could have garnered support from a group of true consumer champions.

But it did none of these things. Instead it became proficient at spending other people’s money and alienating a key supporter. It became a giant with a shamefully large budget, instead of choosing to focus on helping those who most needed financial guidance. Even now, on hearing it has no real role to play in the delivery of the guidance guarantee, it appears to be in complete denial. Caroline Rookes needs to do the decent thing, accept the inevitable demise of the MAS and announce her resignation. I’ve got a bottle of champagne on ice for when that happy moment arrives.

Martin Bamford is managing director at Informed Choice



Tony Wickenden: Hard times mean making tough choices

I am a big fan of Seth Godin and have been for some time now. I have Chris Woodhams of Prescient to thank for that.  Over the past couple of months, in among all the good stuff that is thrown out daily for free on Seth’s blog (www.sethgodin.com), three pieces in particular resonate with the times […]


Wells Street Journal: Caroline Rookes ‘pleased’ to be axed from guidance

The capricious mandarins in the Treasury delivered a killer blow to our friends at the Money Advice Service last week by axing them from delivering pensions guidance sessions. Citizens Advice will deliver face-to-face sessions while The Pensions Advisory Service will man the phones from next April. Poor MAS was not even trusted to run the […]


Steve Webb presses FCA on pensions guidance safeguards

Pensions minister Steve Webb has questioned the FCA over what controls are in place for people who do not take up the offer of the Government’s “free” guidance guarantee. Speaking at a House of Commons Pension Schemes Bill committee hearing this morning, the regulator told MPs there are currently no safeguards if people choose not […]


Forged signatures and false fact finds: How an adviser sold Ucis to clients on £3k a year

An adviser recommended unsophisticated clients with income of as little as £3,000 remortgage their homes to invest in Ucis and geared traded endowment policies. The FCA is seeking to ban and fine Paul Reynolds £290,344 for recklessly recommending high risk investments to eight retail clients. Reynolds was an approved person at Aspire Personal Finance Limited, […]


News and expert analysis straight to your inbox

Sign up


There are 14 comments at the moment, we would love to hear your opinion too.

  1. Our local MAS bod is a former Barclays Life salesman…. nuff said. He generates quite a few leads apparently, who for?

  2. MAS has never been fit for purpose and the antics of its CEO indicate that it never will be.

    The question I want answered is who was it – misguided individual or quango full of theorists – who originally thought it would be viable.

    From outset it was a bureaucrats wet dream but only he/she was asleep.

  3. Alan Lakey – I can answer your question – neither. It was a group of failed civil servants who saw the rich pickings of an endless stream of other peoples money with which they could provide themselves with nice salaries. final salary pensions and other benefits. No doubt they also built in spectacular redundancy terms which means that when it is finally closed down they will still be the overall winners.

    I’m puzzled as to why people like Robert Reid talk about where to put this money instead. What?? This is our money and it should never have been taken in the first place. The MAS should be scrapped and the MAS levy ceased.

  4. JACKIE mentions they will produce a list of regulated advisers for people but unbiased already does this . If there are too many quangos offering guidance it will confuse people more . They need signposting to the correct adviser for them.

    What a complete mess this is going to be next year. I have serious doubts things will be in place by April .

    As a wealth manager/Ifa I am already seeing a large number of requests for pensions ADVICE . No one wants guidance , there is no comeback , but im also aware of the unregulated firms that are offering text messages and emails to unlock peoples pensions and charging nearly 10%. For execution only guidance !!!!

  5. E L Wisty (an only twin) 23rd October 2014 at 9:39 am

    I can think of 81.1 million reasons why this Quango should be scrapped. Furthermore, following the recent scandalous comments uttered by its inept CEO, in an blatant attempt to tarnish advisers, it has demonstrated an utterly inability to build meaningful relationships with the various stakeholders.

    It was a mistake to begin with, and should now be put out of its (and our) misery.

  6. It is well known that if the boss starts passing work to other staff rather than the person whose job it is, they are on the way out. If they are asked to write procedures on their activity then start packing belongings………

    MAS is a waste of time and Money. We all know the obvious solution is that the government gave advice vouchers which retirees can use with Independent advisers. They could, and given our countries meddling nature, have a body in place to oversee standards of these advisers perhaps. Yes, Advisers will make money off it, but this will be cheaper than setting up failed quangos and the end customer will get what they desired – good advice about there financial options.

    Bit like starting a war and sending the weekend warriors in first while the SAS are put on standby…..

  7. Aside from the damage to its reputation that the MAS seems largely to have inflicted on itself, given that its remit is very much more money focussed than that of the CAB, one would have thought that it [the MAS] would be a logical source of guidance on an issue such as how best to deploy one’s accumulated pension (and other retirement) funds. If the MAS is not considered fit for a purpose such as that, then for just what exactly is it considered fit? Maybe less and less.

  8. I would imagine Christine Farnish has given the treasury the heads up !! on the results of her report due at the end of the year !

    Since its existence all I have heard is white noise ! lots of things we are going to do, lots of things we are doing, and lots of things we have done ? all of which can not be backed up or demonstrated !

    Example how long have the been bleating on about this so called directory ? Christ the pyramid’s would have been built in half the time, and I mean how hard is it to compile a list from the FCA register ?

    Truly an organisation not fit for purpose !!

  9. MAS is familiar. Think up a daft idea. Appoint an outsider to conduct a review that then, surprise surprise, supports your daft idea (no disrespect intended to Mr Thoresen but when did one of these independent reviews come back to a Government and rubbish the proposal) and then look around for someone to pay for it.

    It should have been aborted, or at least strangled at birth. It costs a fortune, does nothing that others don’t do better, and has one even worse problem: it is associated with government. It may not be rule one in the financial planing handbook, but ‘never trust a government’ must be right up there in the top ten.

  10. E L Wisty (an only twin) 23rd October 2014 at 11:10 am

    @ Phil Gillett

    Beautifully said …..

    Always best to stand well away from the fan, when there’s an inbound …….

  11. Quoting directly from Martin Lewis:

    “The service has improved but I still believe the brand building of its website is not a good use of public money.”

    The MAS is funded by INDUSTRY money not “public money” and Martin should know better than to use such terms which give a totally false impression.

    Dick Carne

  12. E L Wisty (an only twin) 23rd October 2014 at 5:13 pm

    I still think that we should mount a protest outside their London office, asking La Rookes to account for wasting our money and to explain why we are ‘unethical’.

  13. Wisty – agree action is required. Why the pfs does nothing for its members I think should be first line of attack though.

  14. E L Wisty (an only twin) 24th October 2014 at 9:48 am

    @ Gillett

    Quite right. After all, if we mounted a protest, we’d first need compliance approval for a ‘real-time financial promotion’, then we’d have to issue MAS with ‘Key Features’ of the protest, advise La Rookes to resign in ‘suitable’ manner and then provide a ‘cooling-off’ notice.

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

Email: customerservices@moneymarketing.com