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Industry to foot money guidance bill under Tories

The Conservatives have revealed they will saddle the financial services industry with the £2.7bn bill for setting up and running the money guidance scheme if they win the next election.
While the present Government plans to co-fund money guidance with FSA-regulated firms, Shadow financial secretary to the Treasury Mark Hoban says a Tory Government would make the industry foot the bill.
In its white paper published in July, the Treasury said the generic advice scheme would cost between £1.4-£2.7bn over a 52-years or £50m a year.
Hoban said: “This would be 100 per cent funded by financial services, including consumer credit companies. The industry will benefit from money guidance in the long term because you will have more confident and capable consumers.”
Yellowtail Financial Planning managing director Dennis Hall says: “The bill ought to be split across society as a whole. Is it fair that we should pay to educate people? We are not a charity. We are trying to run businesses.”
This week, the ABI announced it is developing a streamlined advice service to plug the gap between money guidance and full advice. The model is being finalised at present and savings products delivered through the service would be designed to meet simple consumer needs.


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