A new directory of regulated financial advisers risks failing in its aims if it insists upon a no minimum pot policy, its creators have been warned.
The Money Advice Service has proposed the guide to aid retirees, particularly in the light of the Government's pension reforms and guidance guarantee.
It proposes that the unbiased and non-commercial directory would include advisers who specialise in retirement advice and would list only those advisers who offer advice to all individuals irrespective of the size of their pension pots.
But pensions firm LV= has questioned this element of the plan, saying it could actually be to the detriment of the people it is supposed to be helping.
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In its official consultation response to MAS it said: "We consider it to be crucial that any directory reflects the scale of the advice market and includes all advisers.
"We believe, for example, that an insistence on no minimum pot size will simply deter advisers from joining which would ultimately limit consumer access to regulated advice."
The directory would allow consumers to search for an adviser by postcode, and compare the costs, specialisms, and qualifications of advisers to help them make a more informed decision.
LV= said in its statement that it does welcome any measure, such as the directory, which seeks to sign-post consumers to regulated advice, despite the qualms it has.
It added: "We believe regulated advice can add real value, helping individuals understand all available options and which solution or combination of solutions is the most appropriate for their individual circumstances.
"However, our research found that less than a third of retirees seek retirement advice."
The MAS said its directory would help consumers to transition smoothly from guidance to regulated advice.
Planners will need to satisfy some specified criteria which will be agreed by an independent panel of industry and consumer representatives.
The consultation has now closed.