General Insurance Article - PFG must complement and not compete with private sector

 Responding to the HM Treasury consultation into public financial guidance which closes 22 December, Aegon says:

  

 • Public Financial Guidance such as MAS and Pension Wise must complement and not compete with the private sector
 • The Financial Advice Market Review should expand what the private sector can offer so may reduce the need for public financial guidance in some areas
 • The approach to funding Pension Wise will need reviewed if it is extending to support the secondary annuity market

  

 “We hope the Financial Advice Market Review will introduce a new cost-effective model between full and ‘no’ advice which both advisers and providers may deliver. Public financial guidance also sits in that middle ground but if the private sector can deliver more here, the Government should consider reducing the scope of what the likes of MAS and Pension Wise offer.

  

 “The Government needs to think very carefully before adding new responsibilities to providers of public financial guidance. For example, we’re not at all convinced Pension Wise guidance will be enough for someone selling their annuity on the secondary market, which is a highly personalised decision on a specific product. But we do believe it would be useful for the Government to ramp up public financial guidance on pension scams and eligibility to means tested benefits

  

 “Ahead of any change of scope, the Government needs to review where funding is coming from, and in some cases this should be from general taxation.”