what gaidance was given to the customer
Answers
Explanation:
I am delighted to introduce this report which makes a series of recommendations to enable
consumers to better understand the help available when they are making decisions about
financial matters.
HM Treasury and the FCA, in their Financial Advice Market Review, asked us to suggest a
shortlist of potential new terms for “advice” and “guidance” that would help consumers to
better understand these services when they take decisions about their financial future.
In order to come up with something that would work for consumers, our approach had to be
consumer-led. We drew heavily on the expertise of the consumer groups represented on the
panel, and used consumer research to lead our thinking on what the industry should do,
rather than let industry experts determine what they thought would be good for consumers.
Our research told us what consumers think about concepts of “advice” and “guidance” –
namely that they are confusing and esoteric terms and don’t instinctively fit into the broad
range of ways in which consumers look for help with their financial decisions. Yet once clear
explanations are used, written in straightforward language, and with the two services
presented side-by-side, “advice” and “guidance” can be quickly demystified in a way that
cannot be achieved by simply changing the terms.
Making a real difference to consumers’ understanding of “advice” and “guidance” will require
widespread adoption of the explanations – they need to become the de facto standard in
both regulated and unregulated parts of the industry. This will need both carrot and stick to
be achieved and I am encouraged by the initial feedback from the regulated industry to the
suggested way forward.
I would like to thank those who contributed to this work: the working group members who
generously gave their time and experience to shape the findings and conclusions in this
report; our advisors from Oliver Wyman and the team at Optimisa Research.