TISA welcomes the HM Treasury’s decision to change the definition of financial advice
TISA, the investments and savings membership association, welcomes HM Treasury’s (HMT) consultation response on ‘Amending the definition of financial advice.’
TISA and its members have been championing the benefits of making guidance available to the mass market for several years. TISA sees this as an important step towards moving the nation back to a country of savers; making households more resilient to financial shocks and helping consumers save in the short, medium and long term.
Not only is changing the definition of advice expected to make guidance available to a greater number of consumers and helping them make informed decisions about their personal finances, it is also expected to encourage higher demand for financial advice.
By clarifying the definition of advice and guidance, the Government is creating an environment that will encourage firms to offer new or enhanced guidance propositions to consumers and unlock private sector investment to develop and deliver services that will be of significant value and benefit to consumers.
Considerable work has been going on in the background in preparation of anticipated changes and TISA expects the pace of investment and innovation to rapidly accelerate post today’s announcement. TISA also expect technology to be a significant factor as both an enabler and innovator in transforming the way that consumers access services and manage their financial affairs. Initiatives such as the TISA Digital ID will be more rapidly embraced by consumers as part of greater access to guidance services.
Charles McCready, Director at TISA said:
“TISA see this as a significant step change towards enabling the financial services industry to provide millions of consumers with support and help them make informed financial decisions.
“We are pleased to see that HMT are aligned with TISA members’ preference for adopting the MiFiD definition of financial advice which helps to clarify what is advice versus guidance. It is also sensible that the implementation will align with adoption of MiFiD timescales.
“TISA members were very keen to broaden the availability of guidance to the mass market, as well as protect consumers. The HMT’s response includes proposals on how that might be achieved and this is an area TISA are keen to explore in more detail regarding how this will work in practice.
“There are also strong links between this consultation and the work on a single Financial Guidance Body. TISA is keen to remain engaged with the FCA, HMT and DWP to ensure that the Government and industry collaborate to develop solutions that work in consumers’ best interest, creating access to guidance services that use similar language and consumer outcomes.
“We believe it is critical for Government to work with industry to ensure that consumers receiving guidance from the new Financial Guidance Body, have the ability to action the guidance they have just received.”
Ends
For further information please contact:
Alistair Kellie – Telephone: 0207 680 6558 / Email Alistair.Kellie@newgatecomms.com
Sara Neidle – Telephone: 020 7680 6550 / Email Sara.Neidle@newgatecomms.com
Jessica Hodson Walker- Telephone: 020 7680 6538 / EmailJessica.HodsonWalker@newgatecomms.com
Email: TISA@newgatecomms.com
Notes for Editors
TISA is a unique, consumer focused membership organisation. Our aim is to improve the financial wellbeing of UK consumers by aligning the interests of people, the financial services industry and the UK economy. We achieve this by delivering innovative, evidence based proposals to government, policy makers and regulators.
TISA’s growing membership comprises over 160 firms involved in the supply and distribution of savings and investment products and services. These members represent all sectors of the financial services industry, including asset managers, insurance companies, fund managers, distributors, building societies, investment managers, third party administrators, FinTech, consultants and advisers, software providers, financial advisers, pension providers, banks and stockbrokers.
Current themes of TISA policy work include:
• Brexit: developing proposals for government that will enable the savings and investments sector to prosper on a global scale
• Digitalisation: a digital identity for consumers of financial services, innovation, standards and data responsibilities
• ISA’s: LISA, simplification of the regime
• Retirement saving: the Auto Enrolment review, self-employed and pension tax relief
• Housing: the use of property to supplement retirement income
• Guidance: developing a framework and services to make guidance more widely available
• Education: supporting the education of young people to make them aware of the impact of finance on their life.
TISA also provides support on a range of operational and technical issues targeted at improving infrastructure and processes, standards of good practice and the interpretation and implementation of new rules and regulations. TISA has a successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve industry effectiveness by reducing cost and risk and to enhance customer outcomes. This work currently includes: MiFID II, CASS, the UK Fund Settlement initiative and Payments Strategy Forum. TISA Exchange (TeX) is providing a model for transfers and re-registrations.
Website: www.tisa.uk.com