The Association of Professional Financial Advisers will monitor the take up of the guidance guarantee in 2015.
Outlining the trade body’s plans for the year ahead to FTAdviser, Chris Hannant, director general of Apfa, said the trade body will monitor who uses the guidance guarantee and whether it is successful in persuading more people to take financial advice to optimise their retirement options.
He said the trade body will check if the new pension choices encourage people to engage with their finances on retirement any more than the open market option did in the old annuity market.
If the greater pension freedoms granted from April fail to kick start people getting a better retirement income, Mr Hannant said “we will be seeking further changes to make it happen.”
Looking ahead to 2015, Mr Hannant said there are reasons for both optimism and concern for financial advisers.
He said the global economic outlook is weaker than this time last year, though the UK prospects are brighter.
Mr Hannant said: “The outcome of the general election in May looks as uncertain as any in living memory. What will specifically affect financial advisers?
“The changes to paying for long term care should also see more opportunities for advisers, as local authorities raise awareness of the benefits of seeking financial advice when people need care.
“And due to the changes for financing long term care, virtually everyone in need of care will now contact their Local Authority to set the meter running on their care costs.”
The impact of the Retail Distribution Review will continue to be felt by the profession, Mr Hannant added.
He said: “Apfa will continue to campaign for reduced regulatory costs. We saw some steps forward in 2014, with reductions to both FCA and Money Advice Service fees and reduced reporting.
“At present, a reduction in the proposed fees for advisers for the pension guidance service is being consulted on. Apfa believes the FCA could do more to help, such as in respect of liabilities that attach to advice, reporting and the introduction of a long stop.
“There will no doubt be more to 2015, and maybe even some surprises. After all, no one predicted the changes to pension that were announced in the Budget in 2014.
“We will be talking to members throughout the year through our programme of regional seminars and we will be continuing to work hard to ensure that the voice of the adviser is heard.”
emma.hughes@ft.com
