Advisers give Money Guidance cold shoulder

Confusion surrounding how Money Guidance will work is putting advisers off signing up, the Association of IFAs (AIFA) warns.

Research conducted by AIFA suggests only one in five advisers would put their name to the project in its current format.

The study will come as a blow to the Government and to Otto Thoresen, the Aegon UK chief executive behind the scheme, who are banking on hefty adviser support to get Money Guidance off the ground.

In addition, just under half - 49% - disagreed with Thoresen's assessment that the proposed system’s benefits would outweigh its costs.

“While advisers are open to the proposed Money Guidance system, many remain unconvinced of the benefits,” Chris Cummings, AIFA director general, says.

“We were pleased that Thoresen recognised the difference between advice and guidance, but believe that clarification is still required on how the proposed system will work and how it will be delivered.”

But Cummings says he is “proud” that two in five advisers are undertaking pro bono work. "This shows the goodwill inherent in the advice community – especially important given the current financial challenges we’re all facing,” he adds.

The AIFA study suggests 44% of advisers see a role for Money Guidance within the sector, but 60% said they didn’t know, or didn’t have a view on, whether they would refer customers to the scheme.

“This survey confirms that our members understand the importance of helping consumers manage their finances,” Cummings says, “and that isn’t just confined to paying clients”.

Contact:
Scott Sinclair
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scott.sinclair@incisivemedia.com