Forum Brief: Financial advice

The Consumers' Association has today published new figures revealing that more than fifty per cent of consumers do not think they are saving enough to ensure a secure and comfortable future.

To help tackle the problem, the CA has launched an "Advice for life" campaign which aims to give all consumers access to decent, fair and impartial financial advice.

Forum Response: Consumers' Association

Mick McAteer, senior policy adviser with the Consumers' Association, told ePolitix.com: "The Consumers' Association's National Financial Advice Network proposal would extend access to advice to all consumers especially the most disadvantaged in society, force the industry to work on consumers' terms and deliver financial education programmes more effectively.

"The government needs to take a radical approach to ensure these challenges can be met by the financial services industry and the FSA.

"Financial advice is key to ensuring that people save for a comfortable future. Enabling all consumers to have access to unbiased, quality advice is a key challenge for the FSA and industry. However, the FSA's current focus on reforming independent and tied advice is more likely to boost the power of the banks than deliver consumer-friendly advice.

"Our survey suggests that the 'National Financial Advice Network' would remove many of the barriers that seem to be preventing consumers from saving more for their futures."

Forum Response: British Bankers' Association

A spokesman for the British Bankers Association told ePolitix.com: "We are supportive of anything that increases consumers' knowledge of financial products.

"The BBA is working with the Consumer Education Forum of the FSA Consumer Panel which includes the Consumers' Association and we recognise that much needs to be done in many parts of society.

"Whether it is saving for retirement, buying a pension or buying a home, the consumer's own bank will give sound advice - usually on its own products, but "shopping around" is always advisable. A visit to your own branch is a good starting point.

"We wish the Consumers' Association every success with this initiative."

Forum Response: Barclays

A spokesman for Barclays told ePolitix.com: "We will take on board what the Consumers' Association has to say in this area.

"Barclays wants to be able to give our customers the best advice available and depolarisation of financial advice would enable us to do this."

Forum Response: Bristol and West

A spokesman for Bristol and West told ePolitix.com:" We welcome any initiative that helps people make informed decisions about their financial affairs, especially those who currently feel excluded from financial services. We believe that the CA proposals would go a long way towards achieving this aim by providing access to unbiased advice about general financial planning matters.

"It is important, however, to note that this service should not be an end in itself, but the first step in a process that ends in taking out one or more financial products. For the second step of this process the training, product knowledge and market knowledge of the Independent Financial Adviser and the tied adviser will remain invaluable."

"We see the relationship being similar to the one between a GP and a consultant, with the 'general financial planner' providing advice on the required remedy, and the IFA or tied adviser translating that into specific actions."

Forum Response; National Savings and Investments

Sally Mantell, head of financial adviser relations at National Savings and Investments, told ePolitix.com: "We have not seen the proposals in detail, though we do welcome ideas that make the industry more understandable, straightforward and human because it means people will be encouraged to save more.

"However, we make it clear that we will have to reserve judgement on this scheme until we know how it will be implemented and what qualifications the advisers have."