Industry faces new levy to pay for free guidance on pensions

The financial services industry faces a new levy as part of plans to provide savers with free independent guidance from the Money Advice Service (MAS) and The Pensions Advisory Service (TPAS) upon retirement, the government has said.

The plan changes an aspect of the major liberalisation of defined contribution pensions unveiled in the Budget. Critics had raised concerns a proposal to make providers give 'advice' could see unsuitable investments recommended. The guidance will now be through independent organisations, paid for by a levy on all regulated financial firms - not just the pensions industry. However, the extent of this levy remains unknown as-yet. Under one proposed approach - based on the annual funding requirement the FCA collects from firms - advisers could face a 30% share of the bill. Anoth...