Moneymadeclear, a hitherto online financial service offering guidance on topics such as buying a home and dealing with mortgage arrears, will now offer face-to-face and phone advice.
The proposition was launched by the Government and the FSA, and Moneymadeclear staff will work in conjunction with organisations such as the Citizens Advice Bureau and Age Concern.
The service, which has already been trialled for a year in the North East and North West, will be rolled out across the rest of the country from 1 April. The cost will be £20m in the first year and will be paid for by the Government and the FSA.
In subsequent years, it will be funded by a levy on the financial sector and funds recovered from dormant bank accounts.
Chancellor Alistair Darling said he expected Moneymadeclear to provide much needed advice for one million people in the coming year alone.
However, Mark Graves, managing director at Linear Financial Services, was sceptical of the benefits of the service, suggesting that people may not receive comprehensive advice.
He added: “The money would be better spent on improving the qualifications of existing brokers, so that consumers can be offered the best help possible. The Government needs to invest further in ensuring consumers are provided with quality rather then quantity when it comes to advice.”
Meanwhile, the FSA announced plans to create a new consumer protection committee which will identify risks in the market in conjunction with the Financial Ombudsman Service and Office of Fair Trading. The committee will aim to respond decisively to market threats.
Sheila Nicoll, director of conduct policy at the FSA, said: “The co-ordination committee is a clear indication of the intention, and will, of the authorities to work even more closely together to improve the experience of consumers, and to avoid problems happening in the first place.”
