Commenting on the proposals Barnett Waddingham senior consultant Malcolm McLean says: “This is in my view an absolutely necessary change which if accepted will probably require primary legislation to implement, but is long overdue.
“There is still in the minds of many otherwise experienced pension providers, employers and others, a good deal of confusion as to the difference between guidance and advice, where the boundary lies between the two and how far they can go in seeking to provide help and support to individuals in this important area.
“This is particularly relevant in relation to major ‘take-up’ initiatives such as auto-enrolment where workplace talks and the like about pensions and their importance can often be instrumental in encouraging employees’ engagement with any available pension scheme. And yet most of the communications employers receive from regulators, for example, seem to be directed at their not being seen to influence workers rather than providing positive support and guidance for them to proceed in a more positive direction.
“I have long thought we are missing a trick here in not making it crystal clear what counts as advice and what doesn’t. A cleared definition hung round the “personal recommendation for a specific product” strapline would also help promote better consumer understanding of the advice/guidance options and what they mean for them, For the vast majority of the population advice and guidance are currently probably one and the same thing!”
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