Consumers confused over 'guidance guarantee'

Consumers are unclear on the difference between guidance and advice. What would you include in the guidance guarantee? The Future of Financial Services Conference.

16 May 2014

Consumers are unclear on the difference between guidance and advice

Encouraging consumers to seek professional advice and connecting them with the right advisers is at the heart of everything does.  But our latest research has found consumers are attributing characteristics of regulated financial advice to the government's new pension 'guidance guarantee' pledge.  This has led to confusion about what the actual guarantee scheme could, or should, include.

What do consumers want?

When asked what they would include in a guidance guarantee, 29 per cent of consumers want a guarantee that what they are being told is right for them, while 25 per cent want a general overview of the retirement income options available and 24 per cent would include specific advice on which retirement income option is right for them.  Furthermore, 18 per cent would want a meeting with a professional financial adviser at the government's expense.

Now is the time for action

"Our worry is that the word 'guidance' in the consumer's mind actually means 'advice' - a distinction that the industry is very clear on, but one that is less familiar to consumers," says Karen Barrett, Chief Executive.  "We are calling on the government to be clearer about what they mean by 'guidance' and we will be discussing this with them in coming weeks in advance of the consultation deadline."  Read the full press release.

What would you include?

As those who are closest to the advice process, you're ideally placed to give your opinion and this is your opportunity to have your voice heard.  Take the guidance guarantee survey.

The Future of Financial Services

The UK environment is presenting serious challenges for the financial services industry, policymakers and consumers alike.  At this time, financial PR agency, Lansons is bringing together some of the key industry influencers in its annual Future of Financial Services Conference on 10 June 2014.  Speakers already secured include Martin Wheatley, Chief Executive of the FCA; Antony Jenkins, Group Chief Executive of Barclays; Kamal Ahmed, BBC Business Editor; Stephanie Flanders, Chief Market Strategist for the UK and Europe for J.P. Morgan Asset Management, and Steve Webb MP, Minister for Pensions.

The conference promises to offer a full day of valuable industry discussion.  You can find more information about the conference and how to register:  Lansons is able to offer advisers a 33% discount on the cost: to secure this discount please enter the code 100614fsconf05 when you register.


The team

Category: News Tagged: guidance guarantee

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