30 June 2011

CII: Financial capability - The Money Advice Service and educating the public on the RDR

Summary

• Government will launch its promised Financial Health Check on 8 June 2011, an on-line tool designed to help consumers think and plan their personal finances.
• The Financial Health Check will act as a signpost to a range of impartial financial capability resources already available by the newly rebranded Money Advice Service through internet, telephone and face-to-face channels.
• The Financial Health Check/Money Advice Service is a key element of the Government‟s national financial capability strategy which has seen much activity in the last few years, including the Thoresen Review of generic financial advice and the Money Guidance Pathfinder that took place in 2009-2010.
• The last several months have seen debate within industry about the labelling of the new service and its implications for financial advice. However we believe that the Money Advice Service could play a valuable education role for consumers.

CII View:

• We support the Money Advice Service and its work, believing that it is a vital part of restoring public trust and confidence and acts as an impartial voice to consumers.
• The Service is best placed to lead a campaign to prepare and inform the public about the implications of the Retail Distribution Review.
• CII research finds that nearly 11 million consumers who have not received advice would consider it if they knew about the RDR changes.
• We believe that while some may have concerns (incorrectly in our view) that the Service may offer competition to the regulated professional financial advice sector, over time it will stimulate more consumers to think and take action and will lead to more consumers seeking and using regulated advice.

Issue paper

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