National system of generic financial advice to be put in place
London (ask4loan) October 26, 2007: Millions of Britons need advice and support to understand the financial decisions they will make. A generic advice regime for the investment industry will try to improve the financial capability across the country.
The cost of putting such a system in place is proposed to be shared equally between government and industry, says the interim report by the Thoresen Review of Generic Financial Advice (GFA).
The report clams that the benefits arising out of this service would offset the costs by up to 3.5 to 1. The generic advice scheme has some 19 million people to take care of. It includes around 7.5 million people that government considers are at risk from poor financial planning. Principally, it will help people take charge of their financial affairs before any serious problems develop.
Commenting on the development, Kitty Ussher, economic secretary to the Treasury, said: "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."
Of late, millions of Brits are under pressure due to rising interest rates on personal and secured loans. The stifling credit situation has also made the matter worse for them. Such a financial service would be a welcome sign for them.