View more on these topics

Panel wants utilities to pay

The Financial Services Practitioner Panel says utility providers should contribute to the Money Advice Service’s budget.

During an evidence session at the Treasury select sub-committee’s inquiry into the MAS last week, panel chair Joe Garner said rising utility prices are likely to have an impact on people’s finances in the short-term and energy firms could provide some funding.

Garner said: “Earlier we discussed the risk of rising interest rates leading to stress for customers. I think the more likely short-term risk is rising energy, fuel and utility prices. Whilst it is absolutely appropriate for the financial services sector to be funding the MAS, there are other sectors that also have responsibilities in this area and maybe they should also be contributing.”

Financial Services Consumer Panel chair Adam Philips told MPs that, in future, MAS users could be asked to pay a fee for its services.

Philips said he is “disinclined” to support a fee structure in light of questions raised by the RDR over how willing people are to pay for advice, but he added: “It may well be as people see the benefits of it, it may be they are willing to pay for more and better advice.”

The MAS budget for 2012/13 is £80.8m. The £46.3m it will spend on money advice is funded by the financial services industry while the £34.5m it will spend on debt advice is funded by lenders.

Garner claimed many in the industry are happy to fund the MAS as long as they can see there is value for money.

He said: “I do not think there is an issue over the price tag, there is an issue over value for money for the investment.”

Recommended

4

Towry in talks with lawyers and FSA over independence

Towry has sought legal advice and is consulting with the FSA over whether it will remain independent or move to a restricted proposition after the RDR. Last week, the Financial Times reported the results of its annual wealth management survey, showing 24 out of 59 firms questioned have not yet made a decision about their […]

Barrage of criticism over plan details

The Financial Services Consumer Panel and the Financial Services Practitioner Panel have hit out at the Money Advice Service’s business plan, claiming it lacks detail and has ambitious targets and unclear accountability measures. MAS published its 2012/13 business plan in March. It says 19 million people could use a money advice service “such as ours”. […]

Advisers could face having to pay charges

Platforms will move to billing advisers for their services in the future rather than the current arrangement where clients pay the platform charge, according to Nucleus and Transact. Speaking at the Marketforce and Institute of Economic Affairs conference in London last week on the future of life and long-term savings, Nucleus and Transact agreed that […]

Europe outlook: Greek gridlock and Italian banks

By Rob Burnett, Investment Director, Head of European Equities As investors await a resolution of Greece’s repayment difficulties, we anticipate a period of consolidation in the European market over the next few weeks. Our base case is that the Greek government and the European Central Bank (ECB) will come to a solution, particularly given the […]

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