Thoresen outlines the emerging themes in his Review of Generic Financial Advice

* "Partnership approach" option for service design and funding

* New service will provide quality - controlled "guidance" or "information", not regulated advice

* Interim report to be published in Autumn 2007

Speaking today at a savings conference in London, Otto Thoresen has outlined some of the concepts currently being considered in his Review of Generic Financial Advice.

Thoresen emphasised that the remit of the Review was to look at how, not whether, a generic financial advice service might work in practice. Although he said nothing had yet been set in stone, he highlighted some of the key themes emerging from the responses and from the work of the Review team.

Thoresen said he was delighted to have received 97 responses to the Review's call for evidence, issued in March. These came from a diverse range of organisations, many of which had with experience of running advice services to the general public - including public service and third sector organisations, as well as from financial services companies and other businesses.

Firstly, looking at how the service might be labelled and how this would reflect the type of service it is destined to provide, Thoresen said that the new service was unlikely to use the words "generic financial advice" in its strapline, and commented,

"People may not necessarily understand what we mean by 'generic' and for the financial services industry the word 'advice' is too closely associated with FSA-regulated advice. The terms 'guidance', 'information', 'education' and 'coaching' have all been suggested....

I feel that 'guidance' resonates well but I am keen to hear peoples'

thoughts on this."

Turning to the design of the service, Thoresen said the emerging options lay between a "monolith" approach - a single organisation providing all aspects of the service - and a "decentralised"

approach, which would consist of a small central body with an advisory, strategic and accreditation function, but with actual services delivered by external providers. In between was a hybrid approach that could sit at any number of points between those alternatives.

Thoresen said that the Review has identified a strong feeling that the new service needs to build on the existing infrastructure of public advice networks already established - which seemed to suggest that the solution might be closer to the "decentralised" approach.

Thoresen remarked,

"A partnership approach to Generic Financial Advice is a real option.

Partners could be commercial organisations or not-for-profit.

Partners could benefit from increased traffic to and from their existing services, tailoring delivery to the clients and customers they already know, and new ones they want to help. The benefits to customers would be familiar brands, familiar locations and focussed expertise." He said that over the coming months the Review would need to pilot delivering generic financial advice via a range of channels and in a range of different environments."

Turning to the funding of the new service, Thoresen urged the industry to engage in the pilots and discussions on funding, commenting, "We are working on the basis that the cost of any new service will be shared between the Government and Industry. The Review Terms of Reference say that funding recommendations should reflect the benefits to stakeholders of increasing financial capability over the long term. This is important - we are not appealing to altruism but to the business case for ensuring that people are empowered to make good financial decisions." Thoresen reiterated that no decisions have yet been made on how funding mechanisms might work and who will be asked to contribute. Clarifying the link between a generic financial advice service and last week's Retail Distribution Review, Thoresen said, "Some people have asked whether generic financial advice would provide a portal into 'primary advice.' It may be that a consumer will go on to seek a product solution after using the service. But they may equally decide that debt advice or another solution is right for them."

He concluded,

"I believe that a world with financially competent and confident consumers - who have access to advice that gives them tools to make effective financial decisions - is a world that is better for them and an environment that can be better for the industry. I hope and believe that we can all work together to build the structures that will deliver what is needed."

Thoresen intends to publish an interim report on the Review findings in Autumn 2007.

NOTES TO EDITORS

1. The Thoresen Review was announced in January 2007 by the then Economic Secretary to the Treasury, Ed Balls MP, as part of the Government's long-term approach to Financial Capability. Its remit is to research and design a national approach to generic financial advice.

2. The review's terms of reference and the Call for Evidence issued on 13 March 2007 are available from the Thoresen Review website, together with copies of this Press statement: http://www.hm- treasury.gov.uk/independent_reviews/thoresen_review/thoresenreview_index.cfm.

3. The review will issue an interim report in Autumn 2007 and its final report around the end of the year

4. The Government's paper, 'Financial Capability: the Government's long-term approach' can be found at:

http://www.hm-treasury.gov.uk/media/1/F/fincap_150107.pdf

3. The review will issue an interim report in Autumn 2007 and its final report around the end of the year

4. The Government's paper, 'Financial Capability: the Government's long-term approach' can be found at:

http://www.hm-treasury.gov.uk/media/1/F/fincap_150107.pdf