Thoresen report recognises wider benefits to consumers of money guidance

3 March

The Consumer Panel has warmly welcomed today's Government sponsored report by Otto Thoresen on a national approach to generic financial advice. The report sets out a blueprint for a national money guidance service. The Panel also supports the report's suggestion that the FSA should take forward the project. This will mean that the new service will be joined more effectively with the FSA’s general review of advice on financial products – the Retail Distribution Review.

John Howard, Chairman of the Financial Services Consumer Panel said:

"The Thoresen report's conclusion that the benefits of the new service to society and the financial services industry outweigh the costs, is what the Consumer Panel has been urging for some time. We believe that the more the industry and government are prepared to put in, the greater the returns will be. Many millions of people could be helped by such a service. All too often they are reluctant to engage with the industry because they don't understand it and don't trust it. An impartial guidance service will provide them with a trusted gateway back into financial services."

Notes to editors

1. The Thoresen Review was announced in January 2007 by the then Economic Secretary to the Treasury, Ed Balls MP, with a remit to research and design a national approach to generic financial advice. Further details are available at www.hm-treasury.gov.uk.

2. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status

3. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on our website – www.fs-cp.org.uk.

4. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.

5. There are currently twelve members of the Panel as listed below (for further information on individual members, see the Panel's website – www.fs-cp.org.uk)

   John Howard (Chairman)
   Adam Phillips (Vice Chairman)
   Kay Blair
   Michael Chapman
   Stephen Crampton
   Caroline Gardner

   Jenny Hamilton
   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart