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MAS directory excludes non-advised brokers

Non-advised brokers have been barred entry to the Money Advice Service’s retirement adviser directory, leaving them at the mercy of pension scammers, Hargreaves Lansdown warns.

Registration to the directory, which will be given to users of the Government-backed guidance service Pension Wise, opens today but will not point customers to firms that offer retirement products without going through a regulated adviser.

Hargreaves Lansdown head of pension research Tom McPhail says the directory’s omission will leave thousands of “middle market” customers at risk of pension scams.

He says: “There’s Pension Wise at one end, and full advice at the other end. But what a lot of people want is a bit of help in the big, broad spectrum in the middle. They don’t want to pay for advice but they want a bit more help than Pension Wise. They want a broker to help them with a retirement process,.

“My concern with MAS’s direction of travel has always been the directory will only present people with a full, fat advisory solution.

“The critical problem is people need to be helped to act safely, without the need to go to full regulated advice. Otherwise, there’s a vacuum for the fraudsters to fill.”

Advisers will only be permitted entry to the directory as long as they are “active” in the retirement planning market and can provide regulated advice for “either” at or post retirement. They will have to specify whether they focus on one market over the other.

Initially, the MAS proposed firms would only be included if they were retirement specialists.

Advisers will need to offer personal recommendations as part of their “primary business model”. This can be “full, focused or simplified advice” says the MAS.

Both independent and restricted firms that have chosen to focus on retirement “relevant” markets will be included in the directory, but restricted advisers will have to agree to focus on a “wide range of providers within the market”.

MAS chief executive Caroline Rookes says: “The Money Advice Service’s directory is open for business. As the Government’s pension reforms are implemented, it is really important that consumers in every part of the country know where to turn to find a specialist retirement adviser who can help with their individual circumstances at a very crucial time in their lives.

“We hope that advisers who meet the entry criteria from right across the UK sign up to be listed on the directory – especially now that Pension Wise will be signposting consumers looking for regulated advice to the directory.”

Advisers can register for the directory here.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Good old Tom, on the scare tactic wagon again, the truth is Hargreaves charge as much for non advice as advisers do for full advice.

  2. Execution only brokers should be excluded as they are not making a recommendation and the normal compensation and protections do not apply.

    The middle market execution only is rigged and the commission that the brokers get paid are simply excessive. The cases I have seen you can get a full review for the same money. HL know this very well and this appear little more than soar grapes.

    Well done MAS for putting the client first and not giving in to the normal corporate bias.

  3. Oh, Boo hoo Tom !!

    I fear you will get little sympathy here ?

  4. Tom Tom the pipers son will not be stealing this pig.

    Pension advice is to important to be given to the free-booters like HL

    It has to be regulated advisers only.
    Well done MAS, good to see you starting to earn your corn.

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