A pensions adviser has raised concerns over the Money Advice Services’ emphasis on complaints in a brochure published in June, which he fears could serve to push people away from taking professional advice.
The ‘Your Pension: It’s time to choose’ booklet has a page dedicated to complaining about advisers, entitled ‘If things go wrong’, suggesting ways to complain about advisers.
Andrew Pennie, marketing director at Intelligent Pensions, argued that this page will put consumers off taking advice and incite a feeling that there will be a need to complain about advisers.
He also claimed the booklet does not adequately promote the benefits of seeking advice, or the risks of not doing so. He did, however, cite an improvement in adviser references overall.
Mr Pennie told FTAdviser: “I don’t believe this brochure needs to contain the ‘If things go wrong’ page. It is unnecessary and only serves to associate advice and complaints in the mind of the reader.
“Why nothing on the risks of not taking advice? No recourse, potentially expensive and irreversible mistakes, often at a similar cost to that of advice etc. They touch on bits but it should be more explicit.”
Mas has been criticised in the past for its relationship with advisers, amid claims its website did not do enough to signpost financial advice. It has also been widely criticised by the Treasury Committee for not being value for money, and is currently subject to a Treasury review.
Mas, along with the Pensions Advisory Service and other third parties, will be delivering the government’s guidance guarantee, which Mr Pennie also had concerns about.
In particular, Mr Pennie was concerned about a lack of knowledge and experience on providing good quality drawdown guidance and advice, which he said was evident in the brochure.
“Our concern was ‘guidance/advice’ would still be heavily focused on the more definitive range of options available via annuities and that drawdown could be poorly mis-represented. This concern is evidenced in the Mas brochure.
“While the brochure mentions ongoing drawdown product and ‘performance review’ costs, it mentions nothing about the fact that a host of factors will influence suitability on an ongoing basis.
“Furthermore, it make no reference to the fact that drawdown is likely to be a temporary solution for the majority and exit strategies, such as ‘annuity drawdown’, should be considered as clients get older. The fact a drawdown investor can buy an annuity at any time is even omitted.”
However, despite some omissions, Mr Pennie said that the brochure is a “step in the right direction”.
“It does contain lots of useful information but I still think Mas have some way to go to promote the values and benefits of advice (and the risks of not taking advice) and to help people find a suitable adviser.”
Mas was not able to return requests for comment at the time of writing.
