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The Advertising Standards Authority (ASA) has decided not to uphold any of the complaints against the Money Advice Service (MAS) television advertisements.
In July, 77 financial services professionals, including many advisers, lodged several complaints about MAS' ads.
By August, the ASA had dropped six of the complaints but continued investigating three claims against the free money information service.
However, the watchdog today ruled MAS was not at fault and there is no need for further investigation.
One major complaint was that the use of the word 'advice' in the service's name and TV ads was misleading, because actually the service offers guidance rather than regulated advice.
The second significant complaint was MAS' claim "our advice is independent and unbiased" could lead consumers to believe the information provided was covered by professional indemnity cover.
Lastly, complainants said MAS' claim it was "set up by government" was misleading as it was actually created by independent regulation the Financial Services Authority (FSA).
Today the ASA rejected all of these complaints. It said most viewers would understand the use of the word "advice" to mean guidance and information rather than regulated activity.
The watchdog said consumers were more likely to think the claim "our advice is professional and unbiased" means MAS is not affiliated to any particular provider, rather than drawing any conclusions about professional indemnity cover.
The phrase "set up by government" was also unlikely to mislead consumers, the ASA ruled.
IFA David Chubb, one of the complainants, said: "My concern is the ASA is saying there are two interpretations of the word ‘advice', and that the public knows what they mean.
"However, the FSA says the public does not know what ‘advice' means, which is why we need initial disclosure documents. It is a joke."
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What is advice?
The ASA has hit the nail on the head - the public understand 'advice' as a very broad concept involving any aspect of financial planning and not the very specific definition in financial services regulation which is limited to choosing and narrowing down the product choice. The regulated definition is far to narrow and this results in much of the confusion about what does 'independent' advice mean. Apparently this would take major Parliamentary time to amend so is not on the cards. Meantime, let the confusion reign!
Posted by: Stan Kirk
Suprise, Suprise!!!
Whilst this is NEWS it is not "new news"; what I mean by that is that it would never have had any other than this predictable outcome. The reason being that IFAs are, in the main, a successful, well off and competent buch, many self employed and mostly taking nothing (by way of benefits) from society but paying a decent amount of tax, NI to boost the countries coffers. They are ripe for picking -mainly for that reason. Unlike a bank they would not be supported if they fell on hard times(not powerful enough; unlike a workshy blingmeister chav they will not receive any benefits (not worthy enough) and unlike the criminal classes they have no human rights (RDR) and can lose a lively hood if they decide not to take exams after a lifetime in the industry with only a couple of years left to practice before retirement. Why is it a suprise that one watchdog decides to suport a fellow watchdog in the fight against the successful and relatively wealthy IFA classes. Watchdogs are set up to look after persons who are generally incapable of "defending" themselves or making an "informed" decision. IFAs do not fall into that category. If any dictatorship (or body with unlimited power over another) wants to inflict its will then it is an unstoppable manifestation. You can find examples of power craziness all over the world in different extremes from a simple renegade African chief beating up his neighbours to a youth gangmaster in a city slum taking a cut of the illegal profits of his "possy". Far fetched as this example may seem the structure and sentiment of any master and slave relationship is the same - compliance and order based on fear and a sense of resignation. (obviously I do not use the term complaince in the industry standard comprehended meaning). Nobody is going to fight the IFAs corner and win, ever.
Posted by: dwinsal
"Set up by Government"
Nowt to worry about! the vast majority of people don't trust this or the last lot and whilst state and public sector pensions are being ravaged, hardly anyone will give a toss. In addition, the site is not user friendly and will bore the tits of the end user. Another waste of our levies that's my concern.
Posted by: Peter Taylor
Confused
WOW! We learn something new every day don't we? All these years, I thought I was advising my clients;but today ASA has proved me wrong, apparently all I was doing was I was merely "Guiding" them... Mark
Posted by: Confused
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So "advice" is guidance only then?
So if giving "advice" is only considered "guidance" then what is the point of financial regulation of advice? I think the ASA as playing politics here to some extent and personally feel the adverts could have made things much clearer to consumers including who paid for them as I suspect many will feel it is the Government given it is portrayed as a Government idea. Maybe the FSA should let the ASA know what they define as "advice".
Posted by: Michael Fallas