A major new review by economic secretary to Harriet Baldwin will examine how financial advice could work better for consumers.
The Financial Advice Market Review will look at ways advice can be improved, building on the recent pensions freedom and choice reforms – and free advice available.
The Review will examine the 'advice gap' for people who work but do not have significant wealth, ensure the regulatory environment allows firms to innovate and grow business models to include affordable and accessible financial advice, and finally – it will consider ways to address barriers that deter people from seeking advice.
Harriet Baldwin said: "Making sure that our financial services sector supports working people at every stage of their lives is a key part of our long term plan.
"That's why we have launched a major new review to explore what more can be done to make sure consumers can access high quality and affordable advice and make informed decisions with their hard-earned money."
The review will consider all types of retail financial products including pensions, savings, mortgages, and insurance, and will report ahead of Budget 2016.
It will be led by HM Treasury and the FCA, and an expert advisory panel comprising industry and consumer voices will be chaired by Nick Prettejohn, chair of Scottish Widows.
The government also intends to consult later in the year on how the current statutory arrangements for the provision of free and impartial financial guidance (including the Money Advice Service and Pension Wise) can be made more effective.
Chief executive of the NAPF Joanne Segars welcomed the launch of the review, saying the organisation wants to see a market that works in the best interests of savers.
She said: "Savers have told us they feel positive about pension freedoms but they are also aware of the risks they now face when managing their savings in retirement."
"We welcome the review's focus on providers, but it's vital to its success that pension schemes are included in its remit – workplace pension schemes play a huge role in steering their members towards the best quality advice and guidance."
First published 06.08.2015
Lindsay.sharman@wilmingtonplc.com
