Your IndustryApr 24 2014

Too much information leads to confusion

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The director of sales and agency at NFU Mutual said currently there was an “increasingly complicated environment” of advice and guidance being given out in different ways.

He said: “This is delivered in various forms by banks, insurance providers, financial advisers, the Money Advice Service and government, and it is running the risk of confusing customers even more.”

During a roundtable debate last week, Mr Turner said it was not enough to simply provide information, but that the industry also needed to show greater engagement.

Mr Turner added: “RDR has been cathartic if painful for many firms, but I think everyone would agree we are a far more professional and robust industry as a result.”

Sarah Pennells, founder of the SavvyWoman website, which provides financial guidance specifically to women, agreed.

She said that the industry should “engage more broadly with consumers about what they are getting and why it is a good idea to take advice”.

She added: “I think a lot of people think they can do it themselves, or if they do not have a lot of money to invest they will be confused about what their options are, or they will not feel equipped to shop around in a meaningful way that’s not just about price.”

Adviser view

Gerry McKeon, managing director of West Lothian-based G M Financial Services, said: “I don’t think this is confusing – I think the more sources of advice for consumers the better. As long as it’s clearly labelled as guidance or advice, it’s a good thing that people have lots of options on where to go to find out more.”