A Conservative peer is calling for politicians to pile pressure on the FSA and Treasury to review the Money Advice Service, describing it as a “waste of money”.
Lord Naseby has tabled a written question in the House of Lords asking the Treasury whether it believes the MAS should be scrapped. He is due an answer by next Tuesday.
In the face of such attacks, Lord Naseby believes the FSA and Treasury are wavering in their belief that the industry should fund the service.
He says: “The Government will be looking at it because the FSA now believes it is wrong. The Treasury can see the MAS is being flagged up and someone is tracking it so it will be taken seriously.
“It is all grist to the mill so it would be helpful if someone in the Commons would pick it up as well.
“It is a complete waste of money and is not a service that we need. It is very hard on the advisers who should not be expected to fork out all the time.”
Informed Choice managing director Martin Bamford says the pressure on the MAS to justify its role and budget is growing.
He said: “It is facing a real challenge to justify their future existence in light of such industry and political pressure.
“We hope to see the Treasury provide a detailed answer to the written question from Lord Naseby, ideally explaining how they will ensure the financial services industry and its customers receive value for money from any activity undertaken by the MAS.”