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Guidance guarantee must include adviser directory signpost – APFA

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  • 19/05/2014
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Guidance guarantee must include adviser directory signpost – APFA
The government’s retirement guidance guarantee announced in the 2014 Budget should include the formation of an adviser directory to ensure consumers have a smooth route to regulated advice, according to the Association of Professional Financial Advisers (APFA).

Director general Chris Hannant said the directory should be established and maintained by either the Money Advice Service (MAS) or The Pensions Advisory Service (TPAS) to ensure the “hand off” from guidance to properly regulated advice is as smooth as possible for consumers.

He said APFA was well placed to help keep the directory up to date once it is set up.

Hannant told PA: “People will need help to make the right decision and more people will look for advice. The hand off [from guidance to advice] to consumers must be effective and easy.

“Any directory should be owned by MAS or TPAS. They are thinking about it and I think it is appropriate. It would help give consumers confidence if it came from a government sponsored organisation.

“There must be an effective directory to support the hand off. The right customers need to get to the right people.”

Fixed fee?

He added any directory should include an idea of how much the advice process might cost but was unconvinced advisers should work on a fixed fee model, as suggested by the Personal Finance Society.

However, he added: “An indication would give them confidence to take advice.”

Hannant admitted advice would not be right for all everyone and highlighted people with debt problems would have different needs. He added that the average pension pot was about £20,000 and it was likely people with less than that amount of money would take it as cash and put it in an ISA.

He added: “The government has always been very clear that they wanted to provide guidance to help customers understand the choices that they face.”

>Are advisers the missing piece to the guidance equation? <

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