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Press comment: Rules of Thumb and Nudges: Improving the financial well-being of UK consumers

11/04/2017

If you are covering today’s report, Rules of Thumb & Nudges: Improving the financial well-being of UK consumers, published by the Financial Advice Working Group (FAWG) for HM Treasury and the Financial Conduct Authority, please see the following commentary from Old Mutual Wealth chief distribution officer and FAWG member, Richard Freeman.

The report aims to emulate the ‘five a day’ rule, with prompts and rule of thumb phrases designed to encourage people to engage with their finances.

It found nudges could help people engage if they are simple, actionable & intuitive and if prompts were applied at relevant points in people’s lives.

The report recommended that rules of thumb and strategies for communicating them be subject to behavioural testing and that the Financial Capability Board work with government, charities, industry and other stakeholders on implementation.

Richard says:

Richard Freeman

“Simple rules that stick in the mind can help to change behaviours, and over time could foster a savings culture that makes us more financially savvy, prosperous and secure. But that will only happen with political support.

“Sustained awareness campaigns in other spheres of life have helped to shape our behaviours in the public interest. We now need that same sustained support to embed the foundations of financial well-being into everyday life.

“The proposed behavioural nudges will help people keep on top of their finances, think about the long-term and get the right expert support, whether that be from government-backed guidance services, advice from a professional financial planner or help from a charity.”

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:

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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