Report to propose Government adopt regional pilot on generic advice
The final report of the Thoresen Review of Generic Financial Advice is to be launched this month.
It is expected that Otto Thoresen, chief executive at Aegon UK and report author, will announce a recommendation to build on proposals from the interim report. There is a definite demand for guidance, from customers, the financial services and the economy as a whole, when buying finacial products. "The aim is to build confidence to enable customers to take the necessary steps," said Thoresen.
He is expected to recommend the Government implementing a regional pathfinder in a short timescale in a couple of areas. The pathfinder would be the trial roll-out phase of the service recommended by Thoresen. If it is a success it could then be implemented quickly and if not deemed a success, changes can be made easily.
Thoresen said: "A national system for delivering generic financial advice has a key role in supporting the Government's long-term approach to financial capability."
Axa recently published its research findings that found consumers were more likely to make the most of advice given to them if they are persuaded to make a decision. It said it needed to be more than an information service to have any effect.
The Financial Services Authority and the Government had already tried a basic information service for consumers back in 2001 but it merely consisted of flowcharts and there was no advice. Andy Milburn, IFA marketing manager at Royal Liver, said the Government needed to find ways of enabling people who could not afford the advice to increase their incomes so they could get advice and consequently afford the recommended cover.
Julie Smith, head of protection research at AWD Chase De Vere, said she hoped it would increase people's knowledge and encourage them to make informed choices. "It will encourage people that while they can do the ground work, they will at some point need to seek advice," she added.
The review will include recommendations on the most effective way of serving consumers.
