24 October 2007
A report set up by the government to set out proposals for a national financial advisory service has released its interim findings.
Insurance chief Otto Thoreson was approached by the Treasury to investigate the problem of poor financial planning in the UK, which has a knock-on effect on debt levels and bankruptcy rates.
The first findings of the Thoreson Review of Generic Financial Advice (GFA) has costed a national advice service at £80 million - though it says that the benefits of such an institution would far outweigh the outlay.
A GFA should provide clear financial guidance to vulnerable consumers - but should not recommend any particular product, the report added.
Speaking to news agency Reuters Mr Thoreson, currently Chief Executive at insurance firm AEGON UK, said: "The research and evidence we have gathered so far has enabled us to define in broad terms some of the principles for a national system of generic financial advice.
"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."
Economic Secretary to the Treasury Kitty Ussher welcomed the interim report, adding: "I want everyone in the UK to have access to high quality information and guidance on personal finance, whether it be for 'jargon-busting' or to help them get the best out of the financial products and services on offer.
"This will help people make decisions that are right for them and manage their money better."
Mr Thoreson's full GFA report is due early next year.
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