View more on these topics

Lemos says MAS is serving a sector that IFAs can’t reach

The Money Advice Service chairman Gerard Lemos has hit back at critics of the industry-funded service, claiming it is inconceivable that IFAs could reach its target market after the RDR.

The launch of the MAS in April, funded by a statutory industry levy, was met with concern from sections of the IFA community that it could result in a loss of business.

At the ABI biennial conference, Lemos said: “About half the UK population would benefit from free advice and that is the advice gap that we are aiming to fill. It seems to me inconceivable that independent financial advisers can reach that market after the RDR.”

Lemos said the MAS would allow providers to use the behavioural information it collects from users to aid product development. He said: “We know we owe the industry a debt of gratitude for the levy. We will have, over time, millions of users and the best metrics available on customer behaviour. We hope to use that information to work with the industry on product development and innovation.”

Recommended

Swip to close five funds

Scottish Widows Investment Partnership is closing five funds as part of a wider review of its international equities offering. The group is closing its Swip £10.5m pan-European equity, £14.7m pan-European SRI equity and £15.2m Asia Pacific funds after a number of redemptions following a review by certain institutional investors of their asset allocation into the […]

1

UKAR chief warns of “tsunami” of repossessions when rates rise

Britain will face a huge wave of repossessions as soon as interest rates start to rise again, according to the chief executive of the firm running £80bn of mortgages from bailed out banks. In an interview with The Guardian, UK Asset Resolution chief executive Richard Banks says the projections for the number of people falling […]

Government to revise short-service refund rules

The Government will amend short-service refund rules as part of wider reforms to the treatment of small pension pots. In its official response to the call for evidence on the regulatory differences between occupational and workplace pensions, published this week, the Department for Work and Pensions says it is “not convinced” by arguments to maintain […]

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. “About half the UK population would benefit from free advice and that is the advice gap that we are aiming to fill. It seems to me inconceivable that independent financial advisers can reach that market after the RDR.”

    Just checked the FSA register and I cant see that MAS is authorised to give advice?

  2. He said: “We know we owe the industry a debt of gratitude for the levy”
    He makes it sound like we had a choice when in fact it is akin to digging your own grave.

    the thousands of people who will lose their jobs at Christmas 2012 will crash the mas website with pleas for help.the few who are left can pay for it.

  3. It’s not free advice, it has been paid for after all.
    Do turkeys subsidise the slaughterhouses come christmas time?

  4. So how many staff will MAS need if “about half the UK population” take up this service – and who is going to pay for it then? Even if only a tiny fraction wanted further info/guidance and rang the helpline, the cost would be enormous.

  5. Maybe they should rename it Carlsberg?

  6. “It seems to me inconceivable that independent financial advisers can reach that market after the RDR” – seems someone (the FSA?) has told him there won’t be enough IFAs post 2012, but on the other hand Sants et al are saying the opposite.

  7. Julian Stevens 4th July 2011 at 9:31 pm

    On the one hand, Mr Lemos concedes that IFA’s post-RDR will find it commercially unviable to try to service the financial rump-end of the populace, i.e. that if we try to do so we’ll lose money.

    Then, on the other, he says So you’re all going to have to pay us to do it for you, whether you like it or not, even though the MAS isn’t actually authorised to give advice and robustly disclaims responsibility for any advice that it does give. What if most “advice” from the MAS is to seek out an IFA, but all the IFA’s approached say You can’t afford our services because we’re so over-burdened with regulatory levies, the latest of which are those extorted from us to fund the MAS?

    In a nutshell ~ Heads we’re shafted, tails we’re screwed and it’s hard to see how the consumer overall is going to benefit. One way or another, we have to pay, pay, pay and, if we refuse, the FSA will confiscate our livelihoods. What the hell is this country coming to?

Leave a comment