A national money guidance service of the sort proposed by the Thoresen Review - and the type of service that CashQuestions is seeking to provide - would be welcomed by consumers, according to a report published yesterday by the Chartered Insurance Institute.

The Thoresen Review, conducted by Aegon chief executive Otto Thoresen, whose results were published earlier this year, recommended the setting up of a generic financial advice service in Britain, to help consumers with financial matters free of the sales process that dominates most financial advice in the commercial arena.

According to research by the CII, the overall majority of consumers (58%) feel less financially secure as a result of the worsening economic climate, with more than one in three (35%) feeling less secure in their jobs. In addition, nearly two-thirds of consumers (65%) stated that they would experience difficulty dealing with even modest rises in interest rates. The study shows areas where a national money guidance service could help people to deal with the difficulties presented by the current economic downturn.

Other findings include:

• Nearly half (45%) of consumers said they would use the proposed “Money Guidance” generic advice system;
• Almost 2 out of 3 consumers (61%) lack confidence in the Government’s oversight of the banking system;
• Over half (53%) are less confident that their savings are safer than 12 months ago; Consumer confidence generally has been eroded over the past year with 58% believing they are less secure financially;
• One in 10 homeowners are worried their home might be repossessed; The Citizens Advice Bureau (CAB) is the most relied upon source of financial advice ahead of family and friends.

CII Director of Policy and Public Affairs David Thomson said: “In the current economic climate, characterised by rising oil and food prices, a national service that provides independent, accessible and above all well-trained guidance on financial matters will be a key weapon in the consumer’s armoury for financial capability.”

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