Guidance

Money Advice Service review: terms of reference

Updated 17 October 2014

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This publication is available at https://www.gov.uk/government/publications/money-advice-service-review-terms-of-reference/money-advice-service-review-terms-of-reference

The Money Advice Service has a very important job to do: giving consumers the help they need to manage their money well. There are many social and economic benefits of free, impartial consumer advice and education on financial matters: informed and empowered consumers are more independent and resilient, and they are vital to ensuring well-functioning and competitive retail financial markets. The financial services industry benefits too, and must continue to pay its fair share.

The government wants to make sure that this important job is being done as effectively as possible, particularly in light of regulatory, policy, technological, market and other developments in recent years. The government believes that now is the right time for an independent review of how MAS is delivering its functions and has asked Christine Farnish to lead this review.

This review delivers on the government’s commitment to review MAS before the end of this Parliament, as part of the government’s policy that arms length bodies are subject to regular review. The review will report to the Economic Secretary to the Treasury by the end of 2014. The review will principally make recommendations relevant to MAS, but may also make recommendations relevant to its delivery partners, the FCA, government, and other bodies associated with MAS.

The review is tasked with:

  1. making an assessment of the need for consumer education and advice, including debt advice, and the role that MAS should play in the wider consumer education and advice landscape to most effectively and efficiently ensure this need is met. This assessment should take into account the government’s recent commitment, announced at the Budget, to require pension providers and trust-based schemes to offer everyone approaching retirement free and impartial face-to-face guidance on their available choices, and to consider how continuing access to support can be provided to help them make financial decisions later in their retirement;
  2. assessing how effectively and efficiently MAS is meeting this need through its current approach and delivery models; and
  3. recommending any changes to MAS’s approach and delivery models that would enable it to better meet this need.

In tackling these issues, the government would like the review to consider:

  • the optimal mix between information, advice and education, including financial education in schools
  • the most appropriate channel mix, in order to meet the needs of different consumers
  • the right balance between direct delivery and a commissioning role with delivery through partners
  • the long-term strategy for debt advice delivery
  • the interaction between MAS’s money and debt advice functions
  • how MAS can provide strategic coordination across the sector, working with other providers
  • measurement of success, in particular striking the right balance between impact and reach

In reaching its conclusions the review should take into account the National Audit Office’s findings – set out in its recent report Money Advice Service: Helping consumers to manage their money – and the extent to which MAS has made progress against the NAO’s recommendations.

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