Consumers could spend an extra £1.1bn on financial products if generic financial advice (GFA) or 'Money Guidance' is introduced, according to the Thoresen Review.
The review, published today, claims the concept would "drive behaviour change", leading to increased demand for products and extra sales of anything between £400m and £1.1bn, excluding general insurance, by 2060. It says a test-run of a prototype of GFA found 40% of people would either buy a product or speak to an adviser "within a week or so" of receiving the advice. It also estimates Money Guidance would save the financial services industry up to £210m in reduced regulation costs as the scheme would fall outside of the FSA's regulatory remit. However, setting up the scheme will cost th...
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