Advice or guidance … what’s the difference?


The Department for Work and Pensions has launched a new consumer-facing service that has caused some uproar in our industry because it failed to point out the difference between “advice” and “guidance”.

The new Mid-life MOT has been created by the Money Advice Service, the National Careers Service and Public Health England to offer guidance for people who want to see where they are with their money, work and health before they reach retirement age.

It provides links to other relevant organisations and websites that provide information on a “guidance” basis. However, consumers using this service are not being told clearly that the information provided is not “advice”. The concern is that people are acting on this “guidance”, thinking that they are covered by the Financial Ombudsman and Financial Services Compensation Scheme, as they would be if they had received “advice”, but in fact, there is no financial compensation available for following generic guidance.

Advice is a personal recommendation that considers a Client’s entire financial and personal circumstances. Guidance is non-personal, generic information that can be useful in aiding an individual to make decisions for themselves.

Please be aware that the information you receive from any source that has not taken your entire personal situation into account or has stated that it is “advice”, is likely to be “guidance”. This means that there is no protection if you act on it, only to discover that this “guidance” is wrong for your specific circumstances.

If you are an existing Redwood Clients and you are unsure about anything, please get in touch so we can provide you with personal and detailed advice specific to you. Our new Client Services Packages mean that help is only a phone call away.

For prospective Clients, We recommend you come along to one of our free, no obligation public education seminars and see what you think of us! Redwood is one of the Souths’ leading Pensions, Investments, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of Investments, Pensions, Financial Planning, Estate Planning and Probate, we can advise on any situation. Join us at one of our Free Public Information Seminars: Book online Book Me A Place!Call us on 01489877 547 or Email info@redwoodfinancial.co.uk to book a FREE Initial Meeting with us to review your financial planning needs.

Jasmine Lambert Chartered Financial Planner
Jasmine Lambert

Jasmine is the Managing Director and a Chartered Senior Financial Planner at Redwood Financial. She helps clients manage and grow their wealth and protect their estate. Jasmine also provides expert advice in our FREE Redwood Webinars, where you can learn more about Wills, Trusts and Estate Planning.

Redwood Financial is one of the south’s leading Investments, Pensions, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of Estate Planning, Lasting Powers of Attorney, Probate, Pensions, Savings & Investments, we can advise on any situation.
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