View more on these topics

Skandia calls for risk warnings on money guidance

Skandia is calling for explicit disclosure and warnings to consumers about what the proposed money guidance service provides.

It says a clear distinction is needed between the advisory market and the guidance service if it is going to serve consumer interests and be a success.

Skandia says risk warnings must be provided about possible disadvantages of not seeking advice. It believes clarification is needed on how far guidance can go before it becomes advice, as well as greater clarity for consumers who are moving between unregulated and regulated activities.

Money guidance will not be covered by the Financial Services Compensation Scheme so Skandia says consumers need to understand whether they have received advice and realise they are not covered by the FSCS.

Head of marketing Billy Mackay says: “The evidence that there is a gap in finan- cial capability is indisputable and initiatives such as the Thoresen review should be welcomed. However, the key challenge will be in imp- lementation and ensuring that those who most need guidance are able to and do receive it. It is imperative that the distinction between advice and guidance is completely clear and that consumers understand exactly what they are receiving, how they can benefit and be clear about any costs.”

Recommended

Parental control

Childcare is an expensive business and the 250 handed out by the Government to be invested in each child trust fund is no doubt welcomed by most parents. However, with more and more investment options specially designed to take care of the little darlings’ Government bonus, the cheques can just add further concern to an already heavy frown. So how can a CTF be invested and what is the best way to do so?

Re-reg gets boost as IMA backtracks on IT

The Investment Management Association has dropped its call for fund firms to adopt an international standard for electronic messaging this year.

Crosby to chair crunch group

The Treasury has appointed FSA deputy chairman and former HBOS chief executive Sir James Crosby to chair a working group looking at the credit crunch.

India correction: a terrific entry point?

By Kunal Desai, head of Indian Equities, Neptune A key concern for investors who were looking at India afresh has been the rich valuations and strong prior performance. We view the correction in the market through short-term growth concerns from demonetisation as a terrific entry point for the long-term investor. Investors should not be overly concerned […]

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