Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what progress has been made under the terms of the Financial Advice Market Review on improving the quality of advice being offered to people preparing for retirement.

UK consumers already benefit from a high quality financial advice market. The Retail Distribution Review Post Implementation Review found that the quality and independence of financial advice has improved significantly. It was found to have reduced conflicts of interest arising from commission payments and improved professionalism and competition.

The problem is that this advice can sometimes be unaffordable. That is why the Financial Advice Market Review (FAMR) recommended a package of measures to make financial advice more affordable. The Government is making good progress in implementing its findings. As recommended by FAMR, the Government consulted on introducing a Pensions Advice Allowance, which will allow people to withdraw £500 tax free from their pension pot early, to pay for retirement advice. The Government will respond to the consultation shortly. A £500 tax exemption for employer arranged pensions advice will also be available from April 2017.