In the CML’s latest News and Views, the trade body rejected the “flawed” methodology behind the proposed payment for the financial advice website in its response to the FSA’s consultation paper 13/2, Regulatory fees and levies, due for submssion this week.
MAS used the number of times consumers used the mortgage calculator on the MAS website was misinterpreted as a need for tailored money advice, said the trade body.
It added that the industry-funded service should analyse consumer activity after contact with the advice service, along with any decisions taken, the outcome of those decisions and evidence the need for advice.
“In our view, there is little correlation between the funding proposed for the MAS for 2013/14 – one-third of which will be provided by lenders – and the outcomes it is seeking to deliver,” it said.
In a competitive advice market, MAS needs to explain what it is seeking to do without duplicating or undermining other advisers, said the CML and it needs to explain its future plans.
“That detail is needed if lenders are to have confidence that the MAS is geared up to achieving its objectives and to providing value, both for the industry and consumers,” it said.
“Without being able to measure the value of debt advice, it is harder for lenders to justify their continuing support for the service.”
