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FSA/PN/072/2008
18 July 2008

The Financial Services Authority (FSA) is bringing together key people from Government, the financial services industry and voluntary organisations to take forward a large-scale pathfinder for Money Guidance, a service offering free, impartial information and guidance on money matters, in partnership with HM Treasury.

The 'Thoresen Review of Generic Financial Advice', which was launched last year, recommended that the FSA lead the programme – to be piloted in the North East and North West of England early in 2009 – in partnership with a range of organisations that are experienced in delivering guidance to consumers.

To ensure that all stakeholders have the opportunity to shape the pathfinder, the regulator is hosting the conference – ‘Money Guidance Pathfinder: The path ahead’ – from Sunday 20 July until Tuesday 22 July at St John's College, Cambridge.  The meeting will be addressed by Treasury Minister Kitty Ussher and by Otto Thoresen, CEO of Aegon, who carried out the government review.

The FSA’s Director of Financial Capability Chris Pond said:

"The conference represents a significant milestone in the delivery of the pathfinder programme. It will bring together key stakeholders to help us refine our vision for the pathfinder, provide an opportunity for them to have an input to our thinking and be a forum for seeking engagement from those who could have an important role in helping us to shape and deliver it.

"We launched our National Strategy for Financial Capability in 2006 and it has made great strides in tackling the low levels of financial capability in the UK. We have now helped almost four million people get to grips with their finances. In partnership with the Government, we want to develop money guidance to give more consumers the capability to make sound money choices, to know what questions to ask of their financial service provider, and, just as importantly, to have the confidence to do so and to know where to go if things go wrong."

Delegates will be invited to participate in planning workshops looking at:

• how best to reach and engage with those who could benefit most from Money Guidance;
• the best way of delivering tailored guidance which will shape the telephone and face-to-face aspect of the pathfinder;
• how to use digital technology to support the face-to-face service; and
• evaluating the success of the pathfinder project to build on the Thoresen Review roadmap.

Notes to Editors

1. HM Treasury commissioned the Thoresen Review in January 2007 to research and design a national approach to generic financial advice.  The Review's final report was published on 3 March 2008.
2. The FSA-led National Strategy for Financial Capability aims to find ways to improve the nation’s financial capability and understanding of personal finance. It brings together interested parties from industry, consumer bodies, voluntary organisations, government and the media. We have a vision of better informed, educated and more confident citizens, able to take greater responsibility for their financial affairs and play a more active role in the market for financial services.
3. The FSA defines Financial Capability as:
   • being able to manage money;
   • keeping track of finances;
   • planning ahead;
   • making informed decisions about financial products; and
   • staying up-to-date about financial matters.
4. The FSA continues to roll-out its 'Delivering Change' strategy, a five-year programme to improve the financial capability of UK consumers, which we are now half-way through. The programme targets: school children, young adults who are Not in Education, Employment or Training (NEET), students in universities and Further Education (FE), employees in their workplace and new parents. We also deliver straightforward information through our Moneymadeclear consumer website and publications, and reach a wide range of consumers via our work with non-profit organisations. To date, the FSA has reached almost four million people against its overall target of 10 million people by 2011 and remains on track.
5. More information about the FSA's National Strategy for Financial Capability can be found on the website.
6. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
7. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.