View more on these topics

This week in Politics

The Treasury select committee¹s report into financial inclusion carried an important warning to the Treasury and FSA over the relationship between regulated financial advice and any potential generic advice network.

The concept of generic advice has been championed by countless public bodies, MPs, providers and organisations such as the Resolution Foundation as the silver bullet to the advice gap and as way of encouraging low to medium earners to save.

The influential group of MPs strongly support the concept of a generic advice network but the report says the FSA needs to develop a clear definition of generic advice that differentiates it from regulated advice.

The MPs say ‘particularly careful consideration’ needs to be given to the extent to which information gathered through generic advice can then be relied upon by a regulated adviser.

The committee also calls on the Government to clarify how such a scheme could be funded, and if there should be any sort of charge – something the MPs are against.

Aegon has been one of the leading voices of how Government subsidised generic advice could be integrated into IFA practices, particularly around the issue of personal accounts.

The provider sees a potential role for advisers in this area by setting up a generic advice arm and believes a set of advice focusing on basic affordability, debt management, benefits and investment risk can be provided through a Government-subsidised scheme.

Economic Secretary to the Treasury Ed Balls is due to outline his 10-year financial capability strategy alongside next month’s pre-Budget report and there is considerable pressure on the Government to commit a large amount of funding to this area.

The PBR will also contain the Government’s final decision on Asps, with the industry frantically racing to convince the Treasury to allow some kind of annuity freedom, and more meat on Balls’ recent Isa announcement.

Gordon Brown’s last PBR speech takes place on 6 December and will be used by the Chancellor to set out what life under a Brown premiership will look like.

Some forecast an olive branch to middle England in the form of an income tax reduction or rise in IHT threshold and more atttempts to woo back the City in terms of tax simplification to go alongside the much trumpeted attempts to cut red tape.

Elsewhere the FSA continued its recent speech salvo with a warning from managing director Clive Briault about issues of affordability surrounding mortgage advice and a further speech at the BBA setting out the regulator¹s agenda for 2007 and potential trouble ahead for banks and lenders as the economic climate becomes less benign.

Recommended

Cofunds hits £10bn in five years

Cofunds has passed £10bn in assets, five years since it launched.Rival FundsNetwork is also understood to have reached the £10bn landmark.Industry estimates put the amount of money held on platforms at around £30bn but Cofunds believes this will leap to £180bn by 2010.Cofunds is to launch an offshore bond and will include offshore funds on […]

10 per cent rise in IFAs since depolarisation, says IFAP

There has been a 10 per cent rise in IFA firms since depolarisation, according to research from IFA Promotion.The research, from IFAP’s State of the IFA Nation, confirms provider predictions that depolarisation would see a sharp contraction in the IFA sector were well wide of the mark.IFAP says the research shows the IFA community is […]

Spring has sprung

Well, it’s been lovely to see a little bit of sunshine, even if it was only a brief appearance. I live in Scotland so, believe me, it was very brief.  Of course, with even the tiniest hint of spring, thoughts turn to the inevitable clearout that must take place.  And that got me to thinking […]

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