Consumers could be offered advice on protection from a centrally-funded service, if an industry init...
Consumers could be offered advice on protection from a centrally-funded service, if an industry initiative goes ahead.
The Financial Services Consumer Panel (FSCP) has lobbied both the Government and the Financial Services Authority (FSA) to establish a service, which will offer financial advice to consumers including those earning middle, to low incomes. It would target those people who haven't had any previous contact with an IFA, which could in turn increase business within the industry.
Colin Brown, chairman of the FSCP, said: 'People are being pushed to take increasing responsibility for planning their own financial future. They need a trustworthy advice service which is not just part of the commercial sales process. It needs to offer financial health checks that go beyond savings and investments and include debt, benefits and protection.'
This, the Panel's second response to the FSA's Consultation Paper 121, outlines the need for a centrally funded service to cater for the majority of consumers.
By using the service, consumers would identify their individual needs before purchasing a particular product. Individual products would not be recommended as part of the advice, but 'safe -haven' products, those which have standards, CAT marks or are regulated, would be promoted.
