FSA to lead 'pathfinder project' delivering money guidance service

The Financial Services Authority (FSA) welcomes the Thoresen Report published today, and the announcement from HM Treasury that the FSA will lead a two-year pilot project to test delivery of the UK’s first national money guidance service.

The Thoresen Review of Generic Financial Advice, which was launched last year, recommended that the FSA leads a 'Pathfinder' programme to set up a service offering free, impartial information and guidance on money matters. The service will work in partnership with a range of organisations that are experienced in delivering money guidance.

The FSA, and the Government, will work closely together to develop the Pathfinder project drawing on the experience and achievements of the National Strategy for Financial Capability which the FSA launched in 2006 and has now reached nearly three million people. The Government plans to respond further to the Thoresen report in its financial capability action plan, later in the spring.

Hector Sants, Chief Executive of the FSA, said: "Otto Thoresen is to be congratulated for producing such a thorough report and setting out a clear road map for taking this work forward. We are delighted to be leading the next phase of work. The FSA recognises that many consumers are not equipped to make informed decisions about their finances and can fall victim to the consequences of those poor choices.

"We launched our national strategy in 2006 to address this and equip people to manage their money more confidently. We are working with many different organisations to reach millions of people and provide clear and impartial information and guidance through our printed guides and website, Moneymadeclear, and recent initiatives like the Parent's Guide to Money."

The FSA has developed extensive expertise leading the £90 million National Strategy for Financial Capability which links Government, financial services industry, voluntary sector and consumer and education groups in an aim to reach at least ten million people in five years from 2006.

Recent FSA initiatives include:

Parent's Guide to Money designed and produced by the FSA, and distributed by midwives. It is a compact, user friendly guide which gives information on all the financial aspects of having a baby – such as budgeting, tax credits and the Child Trust Fund;

A national consumer campaign due to be launched tomorrow to help consumers make informed financial decisions and find the right mortgage for them. With A Stay in control of your mortgage checklist it is especially focusing on people whose fixed rate or discount deals are coming to an end this year;

The 'Make the Most of your Money' initiative, which provides financial education and information direct to employees in their place of work, has now reached 1.3 million people; and,

Moneymadeclear, a dedicated website to help people manage their money, has been recently relaunched and Compare product tables revamped to make it much easier for consumers to compare the features and costs of a wide range of financial products.