Research by The Exchange with 500 finance intermediaries has found that over 96% of intermediaries believe that the so-called "Stakeholder", simplified financial products suite, delivering easy to understand and low charges pensions, annuities, and investments will not encourage people to save.
Furthermore, 95% believe that the self-help "decision trees" and other modes of self-advice will fail and lead to increased mis-buying i.e. people buying the wrong products.64% of intermediaries believe that some form of government funded advice help scheme, similar to the old "Legal Aid" scheme may prove much more beneficial.
Our View
We suggested a "Financial Aid" scheme 3 years ago to both the Treasury and the Financial Services Authority at the start of this review for simplified products. The financial services market has raft upon raft of legislation, jargon and new products. It has always been our opinion that these self-help guides will fail.
The only way forward to help poorer people obtain quality advice is to consider "Financial Aid".
We already offer a low cost discounted route now for help with our £9.99 Ask An Adviser Service.