Consumer panel calls for stronger Money Advice Service
Better guidance from the Money Advice Service will help fill the post-RDR advice gap, consumer panel claims.
The Financial Services Consumer Panel has warned that there is “still some way to go” before consumers’ needs are adequately met by the advice industry, and called for a stronger Money Advice Service to help achieve this.
In a consumer panel position paper published today (22 May), the FSCP said the Mas should “push regulatory boundaries” to fulfil its function more effectively.
The paper said: “We have always been supportive of Mas and are keeping a watching brief on its progress.
“Although we have some early concerns, we would like it to push regulatory boundaries so that it can go beyond merely signposting, which unless links to other parties are quick and effective is likely to frustrate rather than answer consumer needs.”
The panel also warns that the ‘advice gap’ between consumer need and market supply will be compounded with the advent of the Retail Distribution Review.
As more advisers move to wealthier clients or out of the market altogether, prospective smaller-income clients could be left out in the cold for financial advice. This could be especially pronounced among those consumers previously under the impression that advice was free.