View more on these topics

PFS tells Tories not to wheel out old ideas

The Personal Finance Society has warned the Conservatives against reinventing the wheel after a manifesto pledge to develop a free national financial advice service costing the industry £50m per year.

The Tory economic manifesto, published last week, sets out proposals for a free impartial advice service via face-to-face sessions, phone and online advice.

Funding for the service would come from a new “social responsibility levy” on the financial services sector.

The Government is committed to launching a money guidance service by 2011, with a £20m rollout cost shared between the financial industry and the Government.

Personal Finance Society chief executive Fay Goddard says: “We have already done so much work and invested heavily in terms of how to improve financial capability and the development of money guidance. It would seem log- ical for the Tories to main- tain the existing momentum rather than trying to reinvent the wheel.

“If they do want to do something different, we would need to carefully consider the cost of the work, as well as what they mean by ’free impartial advice’ in terms of whether it fits in the regulated area or not.”

Institute of Financial Planning chief executive Nick Cann says: “It needs to be a little more thought out than just throwing an amount of money gathered from the wrong people. More creative ideas need to be thought out about how to connect with the consumer and give them the confidence and the appetite to take the next step.”

Evolve Financial Planning director Jason Witcombe says that an online decision-tree process would be effective and significantly more cost efficient. He says: “For most people, there are 10 very easy steps that make a very big difference to their finances, such as paying off high-interest credit cards and reducing debt.

“The vast majority of people only need a decision-tree approach, that could be delivered online, to cover fundamental financial management. This would significantly reduce the cost burden to the industry.”


Great expectations for Japan

By James Dowey, Chief Economist and CIO Turnaround stories are an investor’s best friend. If successful, they prompt a widespread and possibly radical re-evaluation of the fair value of the associated assets. If one is brave enough to re-evaluate early on in the process then the returns can be very large. For over two decades […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. We definately do not need any more levies on the industry to pay for 3rd rate simplistic advice.I agree most people would be fine with a decision tree on line,that then directs them to an IFA, if there circumstances dictate,but why should the industry fund another state manged quango which will cost a fortune and achieve nothing.If they want to da anything why not put some money into citizens advice centres to keep costs down.

Leave a comment


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