Since it was rebranded from the Consumer Financial Education Body, the service has been criticised by many IFAs – who contribute towards its funding – for using the word ‘advice’, which AIFA has argued could confuse consumers.
However, speaking to IFAonline, chief executive Tony Hobman said the organisation was “sensitive to the advisory community” and detailed some of the benefits it provides.
“I know there are IFAs who are taking our content, including the health check, to use with their customers before they come for full advice. I think it shows a sense of cooperation and shows we are complementary,” he added.
“There are also thousands of handoffs that we can track to show people going directly to IFAs through our website.”
Hobman explained how it was a “win-win” situation for the industry to be funding the service as it was breeding a “more confident and active consumer”.
“People don’t know where to get advice and don’t know if they need advice – there’s a lot of inertia,” he said.
“What we’re about is getting millions of people in a place where they realise they need to get their money into better fettle. Clearly, for a significant number, that may involve getting professional advice.”
The MAS recently detailed its new role as a coordinator of debt advice, something which will see its budget almost doubled £86.8m.
However, the advisory community will not have to pay for the new services, which will be funded by extra levies on secured and unsecured lenders, as well as existing government grants.
