Topic 9 - Sources of information and advice Flashcards
What are the 3 main elements used to make financial decisions?
- own needs, wants and aspirations
- solutions and providers available
- details of product brands
What information would a potential customer need to know before making a financial decisions?3
- themselves, their own needs wants etc
- solutions available and their providers
- product brands
Why do people need information and advice? 3
- to help make an informed choice for the most appropriate financial product for them
- a lot of people do not have the knowledge to make decisions without advice
- customers need information once they have chosen the product too
What information will providers give individuals?
- about the financial products they sell but nit products sold by others
what requirements does the FCA need when provided with information?3
- fair
- not misleading
- highlight any special risks
What are the 4 methods individuals can obtain information from providers?
- marketing brochures and leaflets
- provider websites
- tv and radio adverts
- providerstaff
what are the main media sources for reliable financial information?
- Money box
- Newspapers
- Price comparison websites
What is the money box?
- programme on BBC Radio 4
- gives ‘the latest news from the world of personal finance plus advice for those trying to make the most of their money.’
What is the purpose of MoneyBox?
- to identify problems that people might be having with particular products
- to warn listeners agains scams.
What are price comparison websites?
- sites that provide information about financial products that help people to make informed decisions
What are the advantages of price comparison websites?4
- consumers can access ar a glance products from providers
- can get information from providers without contacting each separately and save time
- consumers can find ‘best buy’ tables
- consumers can enter their own specifications and find products that suit their needs
What are the disadvantages of price comparison websites?4
- not everyone has access to a computer and some people are not computer literate
- not all price comparison sites are reliable
- price comparisons sites give headline details but consumers should read fine print to check T&C’s
- some sites are biased due to sponsorship from specific providers who push products and not give impartial advice
What are some public sources of financial information?
- MoneyHelper
- FCA
- Competition and Markets Authority
What is the MoneyHelper?
- service set up in the financial services act as consumer financial education body
- support and advice from 3 government backed seervices
What are the objectives of the Money Helper? 3
- to enhance the understanding and knowledge if members if the public amount financial matters
- includes UK financial system information
- enhances peoples ability to manage their own financial affairs
What does a Money health check do?
- look at a persons overall financial position in relation to their circumstances and aims to anticipate future events
What is a money health check? 2
- questionnaires on the websites of some bank and building societies.
- use behavioural insights to encourage people to take financial action
What do money health checks do?4
- answers questions about monry
- help show people their priorities
- helps set clear goals they can work towards
- draw up a personalised action plan
What are the questions of money health checks about? 12
- attitudes to managing money
- age, marital status, work situations of themselves and their partner
- own their home and whether they have a mortgage
- any people depending financially on them or they depend on
- how far their money stretches
- how much they rely on borrowing
- if they have accessible savings
- if they could cope with an unexpected cost they could nor pay for themselves
- if they’ve planned wills
- how going to manage retirement
- whether they have any savings or investments
What is an action plan? 2
- the broken down product of a money health check
- includes step by step help on what to do
What topics do financial education and information provide?
- different life events
- everyday money and benefits
- money topics
- tools and resources
What advice does the money helper provide on different life events? 4
- information on financial implications
- the legal position
- how someone can ho about making financial plans to deal with it
- financial products that might be useful in such a situation
What advice does the money helper provide on everyday money and benefits? 4
- helps people get finances into control
- advice to make money go further
- includes budgeting, reviewing or reducing borrowing
- money saving tips, universal credit and other benefits, bank accounts credit and debit cards
What topics does the money helper provide advice on?8
- savings
- investments
- borrowing
- debt management
- work
- insurance
- pensions
- retirement
What advice does the money helper provide on tools and resources? 5
- includes calculators and budget planners
- comparison tables
- letter templates
- action plans
- a blog about financial news
What is the aim of the competition and markets authority?
- makes markets work well for consumers
- achieves this by promoting and protecting consumer interests while ensuring that business
What successful campaigns have citizen advice passed? 5
- promote awareness of scams
- improves customer service and choice for prepay energy customers
- fair treatment for people using pay day loans
- changing the law so customers can choose correct bills
- ban on letting agent fees for tenants
What are the 3 steps SteChange set out for debt free futures?
- deciding to get help on debt
- access dent advice via its antonyms online debt remedy tool or call the phone debt helpline and speak to an expert adviser
- use the practical solution that works for them
What are the types of financial advisers?
- independant financial advisers
- restricted advisers
What classifies as independent financial adviser? 3
- offer a broad comprehensive range of retail investment products
- give consumers unbiased and unrestricted advice based on their comprehensive and fair analysis of the relevant markets
- telling consumers they operate as an independent advisor before providing any advice
What is an Independent financial adviser?
- provides advice by considering all types of retail investment products that might meet a clients needs and objectives
What is a restricted adviser?
- recommends only certain types of product from one or a limited number of providers
- advice only on particular products and companies
