News Analysis: Promoting public financial knowledge

At the end of April the Consumer Financial Education Body was established with the task of providing the public with free, confidential and impartial advice on managing day-to-day finances and avoiding debt.

This year will see the ongoing roll-out of its Money Guidance service, delivered under the Moneymadeclear brand, allowing the public to speak with trained money guides face-to-face, over the phone and online at www.moneymadeclear.org.uk

The CFEB takes over responsibility for these programmes from the Financial Services Authority and is one area that politicians appear to agree on.

While the Conservative Party is committed to disbanding the FSA, they have supported the need for the new body. Shadow Treasury Minister Baroness Noakes told the House of Lords: "The FSA's own research has shown what a shockingly low level of financial capability exists in the UK, and the sooner that a proper co-ordinated start is made on that, the better."

The consumer group, which is funded through several sources including fees raised by FSA authorised firms, will be led by Tony Hobman, chief executive of the Pensions Regulator.

The British Insurance Brokers' Association welcomed the launch.

Graeme Trudgill, (pictured) technical and corporate affairs executive at Biba, said: "Biba believes it is vital that people get the right insurance. Signposting is critical, we are already doing it and it should make up part of the offering. Hopefully the new body will be able to do more and we are building relations with them."

Source: PB – May 2010