The directory is aimed at helping consumers find a regulated financial adviser specialising in retirement planning after the government’s pensions reforms come into force in April 2015.
Industry and consumer bodies have spent some time hammering out an agreement on the requirements for firms wishing to be listed on the directory.
Firms will be provided with details of how to register for the directory early in the new year.
Under the agreed rules, financial advisers on the directory must have the ability to provide regulated financial advice in either the ‘at retirement’ or ‘post retirement’ market.
They must offer, as their primary business model, regulated advice.
This can be full, focused or simplified advice, but at all times will include a personal recommendation which must be appropriate to the individual client’s needs (in line with the FCA definition of regulated advice).
Advice must be covered by the Financial Ombudsman Service and the Financial Services Compensation Scheme.
As well as firms classified as ‘independent’, firms with ‘restricted’ status due to the fact they have chosen to focus on a particular market (relevant to retirement planning) will be permitted entry to the directory.
Any firm with restricted status will be asked to confirm that its advisers will consider all available providers within the market they have chosen to focus on.
Entry will be at firm level with information about individual advisers who meet the entry criteria (and wish to be entered on the directory) also shown.
Firms listed in the directory will be asked to commit to providing an initial no obligation, meeting either by phone or face-to-face, for all customers approaching them through the directory.
Through a filtering process every effort will be made to match customers with firms that are able to provide them with the service they need, MAS said.
For example, those with small pension pots will be matched to firms who have indicated they will deal with clients of any wealth limit.
Including information on fees and charges was considered “highly desirable” by the independent panel that finalised the criteria for the directory.
However it ws decided that more work is needed to ensure fee information provided is accurate, meaningful and of real benefit to consumers. This work will continue after the directory is launched.
At launch the directory will provide generic information on adviser charging methods and examples of levels of fees charged for different transactions and advice.
Caroline Rookes, CEO at the Money Advice Service, said: “Agreeing the criteria for advisers to sign up to the directory is a big step forward towards getting it in place for April 2015.”
Steve Gazzard, CEO at the Institute of Financial Planning, added:”The new retirement adviser directory is a great opportunity for firms to share their expertise, regardless of commercial goals, and will be critical in helping people to understand when they need regulated advice.”
