2.3 - Sources of Financial Advice Flashcards
What did the Financial Services Act 2010 require?
The FSA to promote consumer financial education
What did the Financial Services Act 2010 result in?
The FSA establishing the Consumer Financial Education Body (CFEB)
What did the MAS replace?
The CFEB
What is the main purpose of the MAS?
To provide information and advice that people need to enable them to make broad financial decisions in answer to questions on insurance products, types of mortgage and pension.
Features of the Citizens Advice:
- Independent but largely funded by the government
- A registered national charity
- Free
Is the Money Advice Trust government-funded?
Partly
What is the MAT responsible for?
Operating the National Debtline
How is the StepChange Debt Charity funded?
From contributions from banks and building socieities
How is Payplan funded?
Donations from all of the lenders with which it arranges debt management plans
Is Payplan a charity?
No
Why is it not unselfish for providers to set up their own advice services aimed at helping customers with debt problems>
Borrowers who default on their loans are a costly problem as they may never repay the money so making sure customers have access to advice will help them to repay money borrowed.
What does a corporate social responsibility report include?
Information on donations that the business has made to debt and money advice charities, as well as how it is directly helping customers in financial difficulties
