View more on these topics

Industry to pick up the bill for consumer education and money guidance

An independent consumer education and information body could be set up, funded by FSA-regulated firms.

The proposals, in the Treasury’s White Paper on banking reform, are for the body to be funded by levies collected from FSA-regulated and OFT-licensed firms as well as a range of other funding streams.

The Treasury has estimated the total cost of setting up and running the body will be £24m over a period of 52 years.

It would take a strategic lead on consumer education and information provision relating to personal finance.

The FSA would establish the authority’s board and chairman with the approval of the Treasury but it would be independent from the FSA.

The White Paper also reveals that the financial services industry will have to share costs of up to £2.7bn for the Government’s new money guidance service.

The generic advice scheme will cost between £1.4bn and £2.7bn. This will be shared between the Government and FSA and OFT firms.

Cicero Consulting director Iain Anderson says: “The question of who pays for money guidance has been posed since the Thoresen review. That question has now been answered and it will be interesting to see if the industry, perhaps cowed by the events of the past two years, will pick up the tab without a fight.”

Recommended

US loan growth is not painting a pretty picture for the US economy

Written by Mike Riddell One of the current big debates in global financial markets is whether investors should believe ‘hard’ rather than ‘soft’ data, where the usually reliable business and consumer surveys have been suggesting strengthening in global growth momentum for some time now, while the economic data that feeds through into the Gross Domestic […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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