Mark Field, MP for Cities of London and Westminster, told the House of Commons yesterday afternoon that there was a risk pensioners could see the guidance as a cheap substitute.

During a debate about the pensions reforms, he said: "I have received constituency representations from an industry specialist who is concerned that the new pensions "guidance guarantee" has the potential to create widespread confusion among consumers and damage to regulated financial advisers.
"Not only will the new levy add cost to the operations of independent financial advisers, but they will essentially be funding a service that stands to undermine their own offering since many customers will now take the view that it is not worth paying for that independent advice."

{desktop}{/desktop}{mobile}{/mobile}

He said: "There is a danger that many pensioners will see broad guidance as an inexpensive substitute for tailored, quality advice.
"My correspondent therefore recommends either that the Government's delivery partners remove any suggestion that they will be providing advice rather than simply general guidance, or else that policy is delivered through regulated, private sector firms, perhaps through a voucher system, which would offer consumers the kind of helpful, impartial and personalised advice that they need."
Mark Hoban, MP for Fareham, Conservative, and former Financial Secretary to the Treasury, said: "We need to find a service that will help those who feel they cannot afford independent financial advice without crowding out independent financial advisers."
The Financial Secretary to the Treasury David Gauke said the guidance guarantee has been created to ensure that people can make informed decisions.
He said: "That is what drives everything we are doing here and that will be an important part of the Bill."
Responding to concerns that it would undermine or replace financial advice, he said: "The Government intend that the guidance will be a critical first step for consumers at the point of retirement.
"It will be designed to help consumers navigate the options available and it is not intended to replicate the services of professional financial advisers.
"The Government expect that many consumers will go on to seek further advice and will ensure that the guidance equips consumers to choose the advisory service that suits their needs.
"The guidance service will not stray into areas such as specific product or provider recommendations, which would be better handled by an authorised independent financial adviser.
"Guidance will signpost consumers to other sources of guidance and advice as appropriate, including professional financial advice.
"The Government expect that many consumers will go on to seek further advice and will ensure that the guidance equips consumers to choose the advisory service that suits their needs."
He added: "The Government believe that it is right that those firms that are likely to benefit from better informed consumers who are more confident about engaging with the financial services industry should help to fund the service."
He pointed to the FCA's proposal that advisers should be included in the cohort of firms paying the guidance levy.
He said they stand to gain from the better informed consumers who understand how regulated advice can help and protect them in their retirement needs.
He said: "It is also worth pointing out that the FCA has committed to a proportionate approach.
"The levy will reflect the size of the firm and the nature and extent of its business."