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Money Guidance lacks industry wide support

The proposed Money Guidance scheme is causing confusion in the industry with only one fifth of people saying they would sign up for it, according to results of an Association of Independent Financial Advisers’ survey.

The findings support Aifa’s view that Money Guidance requires more work before advisers will throw their weight behind it. While as many as 44 per cent of advisers see a role for Money Guidance within the sector, results indicate a general lack of understanding about, and support for, the scheme.

In addition, over half of advisers say they do not know, or do not have a view on, whether they would refer customers to Money Guidance service.

Just under half of advisers surveyed disagree with the Thoresen Review that the benefits would outweigh the costs.

Aifa’s director general, Chris Cummings says that while advisers are open to the proposed Money Guidance system, many remain unconvinced of the benefits. “We were pleased that Thoresen recognised the difference between advice and guidance but believe that clarification is still required on how the proposed system will work and how it will be delivered,” he adds.


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