View more on these topics

Treasury: How we are making advice more accessible


The Treasury has sought to show what progress it is making on increasing access to financial advice.

In the following statement, published yesterday, the Treasury has outlined seven ways financial advice is being made more accessible, which include changing the definition of advice and tax free allowances for pensions advice:

7 ways financial advice is being made more accessible

1. Clearer definition of financial advice

Government consultation on amending the definition of regulated advice under the Regulated Activities Order (RAO) has just closed. This would mean that only advice which makes a personal recommendation is regulated. This will encourage firms to develop guidance services which are more appropriate for those with simpler needs.

2. More affordable advice

The Financial Conduct Authority has set up an ‘Advice Unit’. This unit is working with 9 firms to help them provide online financial advice for people. This would be an online service that considers your circumstances and recommends the best course of action for you.

3. £500 tax-free allowance for employer arranged pensions advice from April 2017

From April 2017 any adult that receives pension advice arranged by their employer will be exempt from paying National Insurance and tax, up to the cost of £500.

4. £500 tax free retirement advice from Spring 2017

Government consultation closed on 25 October on allowing people to use £500 tax free from their defined contribution pension pot (a pension pot based on how much is paid in) to pay for retirement advice. We intend to make this available in spring 2017.

5. Online Pensions Dashboard by 2019

From 2019, people will be able to see the value of their pensions in one place online. A prototype will be built by March 2017.

6. Exploring funding options for the Financial Services Compensation Scheme (FSCS)

The Financial Services Compensation Scheme (FSCS) is the fund of last resort that compensates customers of UK authorised financial services firms if they are unable to get their money back from a firm because it does not have enough assets to pay claims made against it.

The money for the scheme is raised by a levy on financial services firms. The Financial Conduct Authority (FCA) is looking at enhancing the current funding model and will launch a consultation on this by the end of 2016

7. Created a Financial Advice Working Group

The group includes a selection of consumer and industry experts and began in June 2016 to look at how it can bring in three FAMR recommendations:

  • a guide to the top 10 ways to support employees’ financial health
  • a shortlist of potential new terms to help consumers tell the difference between ‘guidance’ and ‘advice’ and decide which is right for them
  • a set of general rules and prompts to encourage consumers to get financial advice



Treasury drafts in new financial services lead

The Treasury has appointed Katharine Braddick to replace Charles Roxburgh as financial services director general. Roxburgh was the Treasury’s lead on the Financial Advice Market Review. The financial services director general role had been left vacant since Roxburgh was appointed second permanent secretary to the Treasury in June. Braddick was previously Treasury financial services director (international and […]


Treasury committee MP: We are holding the FCA to account

A Treasury committee MP has claimed the Government is effectively holding the FCA to account. Speaking at an event hosted by adviser trade body Libertatem in High Wycombe last month, Steve Baker pointed to a number of recent inquiries by MPs into the FCA that had held the regulator to account. These include sessions on the […]

Apple: a stellar technology story

By Ali Unwin, head of technology sector research

Apple recently announced the highest-ever recorded quarterly net profit ($18bn), with the sale of 74.4 million iPhones helping the company deliver $74.6bn of revenue for the quarter ending December 2014. These sales were largely driven by strong demand for the new iPhone 6 and iPhone 6 Plus. Highlights included Chinese iPhone sales doubling year-on-year and unit growth of 44% in the US — supposedly a well-penetrated market. Apple ended the quarter with $178bn in cash on its balance sheet, having generated a staggering $30bn in free cash flow during the quarter.

At Neptune, we have been long-term believers in the Apple story, and continue to hold the stock in a number of our portfolios based on the company’s long-term growth prospects. This is predicated on our belief that Apple has proved thus far that it can — unusually for a consumer electronics company — maintain high margins for a sustained period of time, even as adoption of new technology slows down and competitors produce similar-specification products.


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. None of this can escape the fundamental reality that what most people want is face-to-face advice culminating in a personal recommendation followed by help with all the paperwork to get it actually done.

    To pretend otherwise is self-deluding.

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