John Govett, chief executive of the newly created Single Financial Guidance Body (SFGB), has promised improvements to pension guidance, as the body will take on board recommendations made in light of the British Steel plight.
The SFGB – created by merging the Money Advice Service, The Pensions Advisory Service and Pensions Wise - was launched in the beginning of the year.
In a letter to independent Labour MP Frank Field, chairman of the Work and Pensions select committee, dated January 30 and published today (February 18), Mr Govett said the guidance space would be transformed to ensure more people are being protected from making bad decisions about their finances.
He said thanks to the framework created by the Financial Guidance and Claims Act, the new guidance body was able to work with the government and industry to "re-focus public financial guidance on areas of the greatest need and impact".
A consultation on the body's first corporate strategy is expected to be published.
Mr Govett wrote: "To improve outcomes and deliver improved protection for consumers that is truly preventive, pensions guidance must be part of a wider network of approaches and interventions, regulations and awareness raising to create a stronger norm of seeking guidance and advice.
"We will use our forthcoming consultation and listening exercise on the SFGB’s first corporate strategy to understand the most effective role for the SFGB, in collaboration with regulators and the industry, to improve communications and enhance wider consumer protection in line with the recommendations of Caroline Rookes’ report."
Ms Rookes, ex-Money Advice Service chief, had conducted an independent review of the British Steel Pension Scheme (BSPS) debacle.
She recommended in January The Pensions Regulator (TPR) should explore the idea of trustees or trade unions having a panel of financial advice firms that members can choose from for their defined benefit (DB) transfers.
She also argued the process needed to be made easier for people who seek financial advice on a pension transfer.
Mr Govett said the new guidance body will work closely with TPR and the Financial Conduct Authority (FCA) to respond to these recommendations, while "building on the achievements of the separate guidance services to date".
He gave as an example Tpas, which has a helpline that provides guidance to customers who have sought urgent help with their pension transfers.
Mr Govett added the SFGB was also working closely with the regulated intermediary market to "ensure clear and effective signposting to regulated specialists in the area of DB transfers".
As FTAdviser reported earlier this month, the guidance body is working with the Personal Finance Society on developing a 'Gold Standard' and guide for consumers on what they can expect from financial advice.
When finalised, this guide will be communicated and promoted through MAS’ retirement adviser directory, Mr Govett said.
maria.espadinha@ft.com
