Need for free Generic Financial Advice service

The need for national provision of a Generic Financial Advice (GFA) service has been supported in evidence from a pilot project linking Independent Financial Advisers (IFAs) with Citizens Advice Bureaux across the UK.

Moneyplan, a partnership between national charity Citizens Advice and the Personal Finance Society (PFS) and funded by Barclays and Aegon UK, has been operating in 28 Citizens Advice Bureaux across the UK. 30 IFAs have signed up to volunteer their time to provide face-to-face generic financial advice at no charge to clients.

Provision of GFA, that is advice that helps people cope with understanding and planning their finances without promoting the sale of any product, is currently the subject of an Independent Review, lead by Otto Thoresen.

Evidence released on the profile of those accessing the Moneyplan project, and the reasons for seeking advice, suggest that there is significant demand for a face-to-face GFA service to be provided across the country. Owner-occupiers aged over 50 who are on a relatively low income have made up the majority of clients using the service, with the trigger for seeking advice often being illness, retirement, bereavement or redundancy. Many clients may not normally consider seeking help from an Independent Financial Adviser or may not be able to afford it. As such the Moneyplan project provides such support in a trusted environment.

Jackie Nowell, Head of Partnership Development for Citizens Advice said: “The results so far of partnering Citizens Advice Bureaux with Independent Financial Advisers in the Moneyplan project indicate both that there is a need for a national Generic Financial Advice service, and that this is an effective model for delivering it. The range of issues presented to the IFAs is broad, but it appears that there is particular demand from those who may own their own homes, but have low incomes. This evidence emphasises that there is a gap in provision which needs to be addressed.”