THE GOVERNMENT is setting up a new financial advice body to help consumers make decisions on their debt, money and pensions.
The organisation – which does not yet have a name or a launch date – will replace the Money Advice Service (MAS) as well as the Pensions Advisory Service (TPAS) and Pension Wise, combining all three services.
“Our government wants to give ordinary people more control over the lives, and that includes their financial security,” said Simon Kirby, the Economic Secretary to the Treasury. “We strongly believe that creating one public guidance body is the best way of making it as easy as possible for people to access the help they need to get their financial questions answered.”
The government had initially planned to develop two separate bodies, one which offered money guidance and another which amalgamated the two pensions advice units. However, during a period of consultation, industry and consumer finance groups raised concerns about how two bodies might work together effectively. It is now consulting on the most effective way to design the single body model.
“A single guidance body will be more efficient and will help consumers make the right financial decisions and we are committed to ensuring people can access the best free and impartial financial guidance possible,” said pensions minister Richard Harrington.
It is not yet known when the new body will come into effect, or whether it will encourage consumers to consider investments in the alternative finance space.