As part of his 2016 Budget Statement, the Chancellor announced
the demise of the Money Advice Service, and published a
consultation restructuring the delivery of public financial
This decision follows a Treasury
consultation that closed in December 2015 on the future of public
financial guidance delivery. It follows a debate which has been
going on for years over the need for such a service, whether
unregulated guidance is even practical for consumers, and who
should deliver it.
Notably on the latter point, the
Thoresen Review in 2008 had always intended any new organisation to
be strategic in nature rather than delivery-orientated, and should
work with existing bodies on delivery of services.
The Treasury is now consulting on the
creation of two new organisations:
- A new pensions guidance body will take on and extend the
services offered by The Pensions Advisory Service (TPAS) and
Pension Wise and the pensions services offered by the Money Advice
Service. Its objective would be to make sure that consumers can get
all their pensions questions answered in one place, including
questions on the pension freedoms.
- A new guidance coordinating body to replace the Money Advice
Service. This would be strategic in nature, would work with
existing bodies that would take forward the actual delivery of
services, and not be publicly branded.
The consultation closes on 8 June
2016, with a view to a final decision published in the autumn.
The new bodies would require legislative changes which the
Government believes will take 6-12 months, and allowing for a
reasonable transition period, the new bodies would be live by April
View the attached briefing »
CII response: HM Treasury public financial guidance consultation
CII-PFS policy briefing: Financial Advice Market Review and public
financial guidance consultation (Oct 2015)