Mortgage News
Financial planning ambassador rues ‘abuse’ of advice terms
The head of the organisation charged with promoting and setting standards for financial planning around the world believes it is possible to communicate its value to a UK public already sceptical about broader financial services.
Noel Maye, CEO of the Financial Planning Standards Board (FPSB), said the “overuse, misuse and abuse of terms” in the financial advisory market is undermining efforts to educate consumers. But, he added that regulators, professional bodies and other stakeholders can change that.
Though the UK, compared to many other nations at least, is committed to holistic financial planning, an immediate problem according to Maye is that visiting a financial ‘adviser’ still means a multitude of things.
He said: “The biggest challenge to consumers is: do I know who I’m talking to? You’re a doctor, receptionist, or a surgeon; got it. [But] you suddenly get into financial services and everybody’s a financial adviser. We’ve got advisers, planners, consultants. If you’re a consumer going to find help, it’s our job – professional bodies, regulators – to make that straightforward and clear.”
Maye questioned the adoption of the terms ‘restricted’ and ‘independent’ to describe the different types of regulated advice available in the UK. “We should come together and really get clarity,” he said.
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