Press comment: Consumer explanations of “advice” and “guidance” | Old Mutual Wealth
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Press comment: Consumer explanations of “advice” and “guidance”

11/04/2017

If you are covering today’s report, Consumer explanations of advice and guidance, published by the Financial Advice Working Group (FAWG) for HM Treasury and the Financial Conduct Authority, please see the following commentary from Richard Freeman, Old Mutual Wealth chief distribution officer and member of the FAWG.

The report finds that standardised definitions of advice and guidance could give consumers a better understanding of the services available to them, and equip customers with a clearer set of expectations when selecting the level of financial support they require.

Research conducted for the FAWG found that clear and consistent descriptions of advice and guidance led to increased understanding of the scope and parameters of different services.

The reports says ‘clear explanations promote a better understanding of the services available, the associated costs and implications for decision-making, and consumer rights to protection and redress. They improve consumers’ awareness of where and how to access the support they require.’

The report recommends that FCA regulated bodies are mandated to use the standardised descriptions, and that non regulated entities, such as charities, be encouraged to adopt the same language. 

Old Mutual Wealth’s own research illustrates that those who take financial advice and set financial goals for retirement are likely to be enjoy a higher pension income.

Richard Freeman

Richard says:

“Feedback from consumers shows few have a firm grasp on the distinction between advice and guidance. While the labels themselves are not especially important, it is critical consumers receive a clear and intuitive explanation of the service they are receiving.

“This will allow consumers to make informed decisions about the level of support they need with their financial choices. The descriptors give consumers clarity about the value of a personal recommendation from an adviser, and the comparable responsibility they have for decisions taken following guidance.”

“Many people underestimate or fail to recognise the key benefits of taking advice from a qualified adviser. Ensuring they have a clear understanding of the distinction between advised and non-advised services will encourage people to look more closely at the value of advice.”

For more information contact

Michael GlenisterOld Mutual Wealth020 7778 963807469 144535michael.glenister@omwealth.com
Kathleen GallagherOld Mutual Wealth023 8072 629307990 004932kathleen.gallagher@omwealth.com

Notes to editors:

About Quilter plc:

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

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset 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 the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• Private Client Advisers to Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.