Thoresen Review set to give consumers financial guidance

The government has announced details of new guidance designed to help consumers make more financially aware decisions.

According to the British Bankers Association (BBA), the proposals are designed to deal with the core problems of a public lack of understanding and awareness of financial services and how banks can help.

Otto Thoresen has been appointed by the economic secretary to the Treasury to undertake the review.

Angela Knight, BBA chief executive, said: “The BBA believes better financial education is key to ensuring people can make sensible plans for the future and provides us with the best hope of addressing the problem of financial literacy at a national level.”

She added that the Thoresen Review has identified a real gap in the financial knowledge among the population.

The recommendations included the implementation of a national money guidance service to be governed by the principles of impartiality, supportiveness, crisis prevention and universality.

Budgeting, saving and borrowing, protection, retirement planning, tax and welfare benefits are some of the topics covered by the new guidance.

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GFA found to be ‘feasible’

The Thoresen Review of Generic Financial Advice released yesterday has concluded that it is a “feasible” project.

Appointed by the Economic Secretary to the Treasury, Otto Thoresen carried out an examination of the practicality of providing a national platform for generic financial advice.

The investigation found that the benefits of delivery such a service would “outweigh costs by 3.5 to one”.

It also set out the most important qualities for a national GFA service as found in consumer research. These stated that it should be “supportive and informative” as well as “persuasive” without being critical.

Furthermore, it should be “available to all” and “not linked to a product sale” while also be “jargon busting”, advising on debt management, taxation and benefits.

Mr Thoresen said: “Complete impartiality and effective marketing will be critical. But it’s also essential to design a system which will be of genuine benefit to people and which can be sustained over the longer term.

“We are currently running pilot schemes to test out elements of a national system and the findings will enable us to develop the proposals further in the months ahead.”

The review’s final report will be published early next year.

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