The Chartered Insurance Institute and its PFS arm have voiced support for free, impartial public financial guidance in response to Treasury proposals - but say the new body must have a statutory duty to 'champion' the benefits of professional financial advice.

The professional bodie says that the provision of guidance short of regulated advice can be good for consumers as long as it is clearly defined and there is proper co-ordination with relevant bodies. Any public guidance service must be “independent and impartial’” says the CII.

Laurence Baxter, head of policy and research at the CII, said: "The Chartered Insurance Institute (including the Personal Finance Society) supports the provision of public financial guidance.

“We believe that guidance short of regulated advice can be helpful to consumers, provided it is delivered well, and in a timely fashion, and is sufficiently coordinated with other relevant bodies, including sector firms.

“Although the actual delivery of such services could be undertaken by a range of different organisations, it must be viewed by the public as independent and impartial. The Government and regulators must ensure that the highest possible standards are met and supported by the respective professional bodies."

The organisations says the the ‘coordinated delivery of public financial guidance’ must be accessible and inclusive, in keeping with a wider national financial capability strategy, and be underpinned by appropriate professional standards.

For the new money guidance body to replace MAS it says this body should have :
• No public profile: it should instead be focused on sitting strategically above all the delivery bodies including the "new Pension Wise" in a coordinating role.
• Responsibility to oversee signposting:  
• Duty to promote value of advice: "while professional financial advice might only be appropriate to certain consumers, the new money guidance body should be given a statutory duty to champion the promotion by the delivery bodies of the value of financial advice."
• Aim to address gaps, not overlap
• Communicate value to levy contributors.

For the new pensions guidance body it says this should:
• Use Pension Wise brand to build on the success of Pension Wise
• Scope and divide with broader long-term savings clarified: Its scope should be clearly defined in the legislation to prevent "mission creep".
• Signposting: there must be a responsibility for the body to signpost out-of-scope inquiries to other delivery organisations.
• Channels: "we believe offering all services across all three channels is neither cost effective nor useful. The on-line and telephone services should be offered in the first instance, with face-to-face used only for more detailed inquiries."
• Promotion: considerably more promotional support is needed for it to be the public's "go-to" body