TISA calls for the creation of a kitemarked guidance framework
TISA, the financial services membership association, has called for the creation of a holistic guidance framework which caters to all sectors of society, age groups and circumstances but with a focus on helping low and middle income households. This builds upon the proposals developed in March 2015 by TISA’s Savings and Investments Policy project(1), (‘TSIP’, ‘the Group’) as part of a detailed set of recommendations to re-establish a savings culture in the UK.
Research(2) has revealed low levels of financial knowledge which is inhibiting short, medium and long term savings, for instance two thirds of people do not know how much they need to save for retirement. This is largely due to a lack of individual financial education and a wider guidance vacuum.
TISA believe a core component of tackling the UK’s savings crisis is to create a kitemarked guidance framework which provides support in making short, medium and long-term financial decisions. The kitemarked framework would be an industry-wide standard which is supported by enhanced education, providing generic guidance and financial planning.
The aim is to provide financial guidance throughout an individual’s life as well as around critical financial landmarks, such as buying a property or saving for retirement. This would involve boosting education to enhance financial capability, better access to information and guidance and point people towards full, tailored advice where appropriate.
Such ‘cradle to grave’ financial guidance is critical to ensuring savers are pro-active and make well-informed financial decisions, which will benefit both their and the nation’s financial security.
David Dalton-Brown, Director General of TISA said:
“The UK is facing a savings crisis, especially regarding retirement where we face a tipping point in 2035 when future generations will retire worse off than their parents. To avert this looming crisis, individuals need to take control of their financial affairs by pro-actively managing their money and planning for the future.
“Financial guidance will be the primary support for millions of people and will therefore be of critical importance if we are to help ensure society is financially capable, savvy and attuned to the both the importance of saving and to the opportunities it presents.
“Building on the original TSIP proposals in March 2015, our recommendations will provide consumers with the tools to enhance their financial resilience and security. A kitemarked industry standard ensures everyone has access to trusted guidance and best practice. It will raise the levels of financial capability and standardises all guidance being offered from financial services firms to the third sector.
“We hope that our views are strongly welcomed by HMT and the FCA and look forward to working with the financial services industry to provide support for consumers to seek better guidance and advice, in order to enhance their financial wellbeing, and help to re-establish a savings culture in the UK.”
For further information please contact:
Alistair Kellie / Nick Morris – Telephone: 020 7680 6550 / Email Alistair.Kellie@newgatecomms.com Nick.Morris@newgatecomms.com
Email: TISA@newgatecomms.com
Notes for Editors
TISA is a not-for-profit membership association operating within the financial services industry. The focus of our recommendations and actions is improved outcomes for consumers and UK plc with this approach leading to a stronger UK financial services industry.
TISA’s growing membership comprises over 150 firms involved in the supply and distribution of savings and investment products and services. These members represent many different sectors of the financial services industry, including asset managers, insurance companies, fund managers, distributors, building societies, investment managers, third party administrators, consultants and advisers, software providers, financial advisers, pension providers, banks and stockbrokers.
Having a legacy of focusing predominantly within the tax incentivised products area, TISA has in recent years moved into the broader savings and investments world, extending our standing as trusted adviser over a much greater remit.
TISA has a successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve the performance of the industry and the outcomes for the public. Effective policy and regulation and the creation of efficient industry infrastructure continues to be the major focus for our members. TISA is unique in that it represents the entire financial services industry, incorporating cross-sector policy, industry and technical expertise. Whilst we maintain a solid partnership with government, the regulators and wider industry, we remain independent and develop neutral views and opinions. This impartiality is reflected in our ability to drive development projects which improve industry performance and consumer outcomes, putting us in the unique position of being able to constantly challenge the status quo to bring about material improvement.
(1) The Savings and Investments Policy project is working with a wide range of financial service companies, trade bodies and consumer groups to develop these pan-industry proposals. It is directed by an Executive Committee formed of 19 leading financial services companies including Aviva, AXA Wealth, BlackRock, BNY Mellon, Columbia Threadneedle, EY, Genpact, Henderson Global Investors, Invesco Perpetual, J.P. Morgan Asset Management, Legal & General, Lloyds Banking Group, Nationwide, Northern Trust, Old Mutual, Openwork, Pinsent Masons, RBS and TISA.
(2) MAS 2015