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Home Finance ABI calls for rules to allow more personalised financial guidance – a big step forwards

ABI calls for rules to allow more personalised financial guidance – a big step forwards

by Jessica Weisman-Pitts
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The ABI has called on the government to allow pension and investment providers to provide better and more personalised financial guidance. They say providers should be able to guide customers through the consequences of different decisions, to help them engage with their pensions and investments.

HM Treasury can reassure do-it-yourself investors and pension savers by reforming guidance ABI

Nathan Long, senior analyst, Hargreaves Lansdown:

“We wholeheartedly support the ABI’s recommendations. This is an opportunity to change the rules for the better, so that providers can give investors enough support to help them make better financial decisions.

We would love to tailor communications to the needs of our clients. We know it would drive engagement with investment and pensions, and improve outcomes. However, once you try to personalise communications you’re very quickly hamstrung by the advice/guidance boundary.

The current rules make it very difficult to personalise generic content with enough information to be useful, because it becomes an implied recommendation. So, for example, if someone has invested in a high cost index tracking fund, you can’t highlight specific cheaper alternatives, even if they are like-for-like, which is a barrier to investors taking action in their best interests.”

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