The consultation follows a review by the Service which found that customers often find it a confusing and fragmented process to find an adviser, and a new specialist retirement directory would help people obtain the right advice, at the right time, and at the right price.
The review also acknowledged that the changes to pensions from April 2015, announced in the Budget, make it even more important for consumers to be able to access a high quality specialist adviser easily when they need it.
The Service proposes that the directory would include advisers who specialise in retirement advice. It would be unbiased and non-commercial, and would list only those advisers who offer advice to all individuals irrespective of the size of their pension pots. It would also allow consumers to search for an adviser by postcode, and compare the costs, specialisms, and qualifications of advisers to help them make a more informed decision.
The directory would also help consumers to transition smoothly from guidance to regulated advice.
Advisers would not have to pay to be in the directory and will benefit from receiving customers who understand the value of regulated advice. However they will need to satisfy some specified criteria which will be agreed by an independent panel of industry and consumer representatives.
As well as proposing the new directory, the Service will be reviewing its web content and making it clearer what regulated advisers do, and the benefits consumers can gain by taking specialist advice.
Caroline Rookes, CEO at the Money Advice Service, comments:
“Many people are faced with making complex financial decisions as they approach retirement, and it is crucial that they know where to turn for specialist advice, particularly following the changes to pensions from April 2015.
“The directory we are proposing today will help people find the adviser that is right for their needs. It will also make it much easier for people to move from the free and impartial guidance we provide to help people understand their options at retirement, to specialist advice on what product to choose.
“The Money Advice Service is committed to working in partnership with the advice community to help consumers make the choices that are right for them. We think these proposals are good news for both consumers and advisers, and hope that the industry does too.”
