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Press comment: Economic secretary on the future of financial advice

13/04/2016

Following Harriet Baldwin’s speech on the on the future of financial advice the following comment was made by Richard Freeman, Old Mutual Wealth chief distribution officer. 

“Individuals will be able to get up to £500 from their employer to cover the cost of advice, as well as accessing £500 of their pension pot early. Combining the two means consumers will have access to £1000 to fund the cost of advice, with half the money coming from the company they work for. This should mean that anyone who wants advice can afford to pay for it. It is key that employers are urged to consider offering staff the full £500, a cost-effective way of helping their employees plan for life after work.

“Government has also indicated it will commission firms and charities to provide guidance in future, rather than government offering those services under its own brand, such as the Money Advice Service. This should create competition among businesses and not-for-profit organisations to come up with effective financial guidance services. This means the success of guidance services can be closely monitored, with successful programmes awarded further funding.

“In order to fully address the advice gap, it is important that we facilitate growth in the advice sector. Reform of the Financial Services Compensation Scheme and other measures designed to reduce the cost and compliance burden on firms will be extremely important in making this happen.”

 

For more information or to speak to Richard please contact:

 

Michael Glenister:

 

0207 7789 638

 

07469 144 535

 

 

 

Tim Skelton-Smith:

 

02380 916998

 

07824 145076

Notes to Editors:

Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Old Mutual Wealth oversees £131.3 billion in customer investments (as at 30 September 2017).

It has an adviser and customer offering spanning: Financial advice; investment platforms; multi-asset and single strategy investment solutions; and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

Old Mutual Global Investors (‘OMGI’) is the asset management business of Old Mutual Wealth with £39.8bn funds under management (as at 30 September 2017). On the 19th December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Following managed separation from Old Mutual plc, Old Mutual Wealth will rebrand to Quilter plc. Each of the businesses within the Quilter Plc group will be rebranded over a two-year period, with the exception of Quilter Cheviot, which will retain its existing name.

Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million (as at 31 December 2016) customers across the world and has a total of £212.3 billion of assets under management (as at 30 June 2017).

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