Money Advice Service

The Money Advice Service is an organisation established with cross Government party support, that provides free and impartial advice on money and financial decisions to people in the United Kingdom. It is an independent organisation whose statutory objectives are to enhance the understanding and knowledge of people about financial matters (including the UK financial system) and to enhance their ability to manage their own financial affairs. The service provides free money advice and guidance online and by telephone.

The service was launched in April 2011,[1] superseding the Moneymadeclear-branded service provided by the Consumer Financial Education Body. Prior to 2010, the service had been a division of the Financial Services Authority (FSA). It was set up by the UK Government and is paid for by a statutory levy on the financial services industry.[2]

The strategic goals and direction of the Money Advice Service are set by a 12-member board. The board is appointed by, but acts independently of, the Financial Conduct Authority (FCA). The service has an independent Chairman and board appointed by the Financial Conduct Authority (FCA). The FCA’s appointments of the Chair and Chief Executive are subject to the approval of HM Treasury.

In April 2012 the Money Advice Service took on additional responsibility for funding and improving the quality, consistency and availability of UK debt advice, a statutory function as set out in the Financial Services Act 2012.

In March 2017 the Money Advice Service launched the new Standard Financial Statement (SFS), an initiative designed to bring greater consistency to the way organisations assess people’s finances when they are in debt.

The Money Advice Service also lead the work of a wide range of organisations across the public, private and voluntary sectors to develop the UK Financial Capability Strategy a ten-year plan to address people’s skills and knowledge around money management, their attitudes and motivations that hold them back and their access to products and services.

In March 2016 HM Treasury announced that the service would become part of a new guidance body that would see the Money Advice Service, The Pensions Advisory Service and Pension Wise combine to form a new single guidance body.[3]

The Financial Guidance and Claims Bill seeks to establish the new statutory body by Royal Assent from Autumn/Winter 2018. The new guidance body will be accountable to Parliament, with responsibility for coordinating the provision of debt advice, money guidance, and pension guidance, ensuring that people across the UK are able to seek the help and advice they need to manage their finances.

The Bill entered the House of Lords for its first reading on 22 June 2017 and moved to the House of Commons for its first reading on 22 November 2017.

The Queen's Speech of June 2017 announced that the new single body would be funded through existing levies on pension schemes and the financial services industry.

References

  1. ↑ "UK financial advice service launched". BBC News. 4 April 2011. Retrieved 16 March 2016.
  2. ↑ Milligan, Brian (16 March 2016). "Budget 2016: Money Advice Service to be abolished". BBC News. Retrieved 16 March 2016.
  3. ↑ Milligan, Brian (2016-03-16). "Money Advice Service to be abolished". BBC News. Retrieved 2017-12-02.
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