'Change' Need For Financial Advice

'Change' Need For Financial Advice
The range of financial guidance open to the public needs to
improve.

Such is the assertion of the Financial Services Consumer
Panel, after a recent study indicated that the current
framework for advice is full of "confusion". It was
suggested that the majority of people are unable to
distinguish between the different types of financial
adviser that are available, whether they offer assistance
on loans, investments, current accounts, savings schemes or
other monetary products. The research indicated that the
majority of people often described such advice as
"independent" even when it has come from someone working
for a bank or a 'tied' financial adviser.

However, upon being prompted to think more about the
different types of financial guidance available, a
significant number of people stated that they are aware
that many advisers cannot be independent as they receive
commission from product providers.

The study also showed that the main reason for why Britons
use a financial consultant is because they can offer help
on where to invest their money. Meanwhile, many consumers
like to be able to discuss their fiscal standing with
someone who has more knowledge and experience of the
economic markets than they do. In addition, seeking out
sufficient monetary advice may well help many people to get
a cheap loan or other forms of competitively-priced credit
effectively.

John Howard, chairman of the Financial Services Consumer
Panel, said: "Our research shows that the financial advice
market is in urgent need of change. At the moment consumers
are generally confused about the type of advice they are
receiving and, appalling though it may seem, many people
are now simply resigned to not getting the best advice when
they talk to a financial adviser.

"The Financial Service Authority's Retail Distribution
Review must establish truly independent advice and clearly
distinguish it from mere sales. The research also suggests
a pent up demand for a properly funded and promoted generic
advice service. This would act as a trusted gateway to
financial services for the many consumers who lack
confidence in the system, or their own ability to engage
with it."

Research from the organisation also showed that those who
have little monetary experience often do not fully
appreciate fiscal guidance. On the other hand, those who
are well off were indicated as thinking they know more than
the professionals and can conduct their own matters
themselves. Such consumers, it was suggested, also believe
that financial advisers only target rich people. This led
the institution to claim that the creating of generic
financial programme would help encourage those who lack
knowledge to seek out help on areas like personal loans and
savings. Consequently, this could help many to get to grips
with their spending.

Indeed, such guidance may be useful to an increasing number
of Britons after Colin Jackson, director of Baronworth,
reported that people need to be disciplined when it comes
to reducing pressures on finances and saving more often. He
added that should consumers continue to use credit cards to
make mortgage payments then they may find they are in a
"spiral" of monetary problems. Such people may realise
that, after getting guidance from a recognised
professional, a consolidation loan may prove to be a
helpful way to manage money.

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Abbi Rouse writes for All About Loans where visitors can
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