The government’s new public financial guidance body should provide a better referral system to financial advice, Chris Hannant has said.
The director general of the Association of Professional Financial Advisers welcomed the plans to merge the Money Advice Service with PensionWise and The Pensions Advisory Service.
In its response to HM Treasury’s consultation on a single body Apfa said the government should provide assurance that the new delivery model will be efficient and cost-effective.
Mr Hannant also said the burden of paying for the new body should not fall solely on FCA regulated entities.
He said: “We welcome the creation of this new public financial guidance body and are pleased that the proposal to merge all three bodies into a single entity has been heeded.
“A single guidance body will bring clarity and consistency for consumers and also generate efficiencies and cost-effectiveness.’
“The funding model for the new body must be fair with contributions from all those that are likely to benefit – this should include those that are not regulated by the FCA.
“It will be essential that the new set-up will result in more efficient use of levy income and lead to future reductions in the cost of the new money guidance body to the financial advice community.”
The Treasury published its consultation on the new body in December ahead of its launch in 2018.
It said it intends to continue to levy the financial services and pensions industry to fund the new body, as it currently does for Mas and Pensions Wise.