The Personal Finance Society also believes policymakers are unaware of the improved levels of professionalism and ethical conduct within the sector.
Baroness Ros Altmann, who left her Ministerial role in the Summer told a recent event that there had been “a reluctance to mandate financial advice because there’s a lack of faith in financial advisers”.
She told FP Today: “I certainly don’t think that the Government realises the difference between an IFA and Financial Planners – there is a real lack of understanding among officials about what the adviser profession does.”
Read her comments in full HERE.
PFS chief executive Keith Richards said: “There is unquestionably more we need to do, but all stakeholders can play an important role in lifting perceptions of the Financial Planning and advice profession.
“By mandating financial advice in legislation, the Government has clearly demonstrated a narrow view of the valuable role professional advice can play in people’s lives, irrespective of how many MP’s and Ministers in government were conscious of the significance.”
“I would agree with Baroness Altmann however, that there are many people, both in Government and in the wider public, who don’t fully understand the labels used to distinguish specialist groups within the profession.”
He said: “Policymakers and consumer champions are generally unaware of the improved levels of professionalism and ethical conduct that have taken place since the mis-selling scandals of the past, and in some cases the poor conduct of a minority within the sector continues to disproportionately impact the reputation of the majority.”
Baroness Altmann claimed there was “no strong industry body to represent Financial Planners” – a point the CISI and PFS disputed.
Mr Richards said: “While the Personal Finance Society is the sector’s main professional body rather than a trade or industry body, we are continuing to evolve our role. Over the past couple of years we have become far more engaged with Government, regulatory and consumer body officials, to ensure they are aware of the key role that professional advice and planning plays in society, as well as the important issues facing the sector in the delivery of good consumer outcomes.”
“Through pension freedoms and FAMR, Government officials have become more engaged with Financial Planning, and have recognised the need to increase access to advice in order to support millions of vulnerable consumers who may be unaware of the value of sound financial management and planning.”
Mr Richards pointed out that he had started an MP awareness campaign through IFAs prior taking over as CEO of the PFS and will continue to urge practitioners to engage with their MPs, who he said “have a responsibility to ensure they understand the personal finance issues facing their constituents and how millions are being left vulnerable and unprotected.”