Background

Overview

The Government is replacing the three current guidance organisations - The Pensions Advisory Service (TPAS), Pension Wise and also the Money Advice Service (MAS), with a single public body, offering debt advice, money and pensions guidance. The Single Financial Guidance Body (SFGB) will be more efficient and, because of its cross cutting nature, will ensure there are no gaps in service and so enable consumers to make the right financial decisions.

The new organisation will be overseen by the Chairman (Sir Hector Sants), the Chief Executive (John Govett) and a number of Non-Executive Directors (NEDs) and Executive Directors (EDs), and supported by staff and partners who will carry out the day-to-day running of the public body’s functions, in concert with the Devolved Nations across the UK.

The new body will become a legal entity on the 1st October 2018, which is when the Chairman and Chief Executive start their new roles for the SFGB. In the New Year (likely to be January 2019) all staff from the current three organisations will be brought under the banner of the one SFGB organisation and new Board. The staff and activities of all three services will transfer to the SFGB, to enable a continuity of service (business as usual) for consumers.

The immediate priority will be to ensure a smooth transition for staff and no interruption of service for the customer. As 2019 progresses it is intended that a new brand will be sought for the SFGB, a new integrated service offer and enhanced partnership working with the wider industry, employers, key stakeholders etc.

About the SFGB

The SFGB will replace the three existing providers of government-sponsored financial guidance - the Money Advice Service (MAS), the Pensions Advisory Service (TPAS) and Pension Wise - bringing together the provision of debt guidance, money guidance and pensions guidance for the first time. A new, single body provides an opportunity to deliver a more streamlined service to members of the public providing easier access to the information and guidance people need to help them make effective financial decisions throughout their lives.

The new body will have five core functions:

  • The pensions guidance function - to provide information and guidance to the public on matters relating to occupational and personal pensions;
  • The money guidance function - to provide information and guidance designed to enhance people’s understanding and knowledge of financial matters and their ability to manage their own financial affairs;
  • The debt advice function - to provide members of the public in England with information and advice on debt;
  • The consumer protection function - enabling the SFGB to work with Government and the FCA in protecting consumers from detriment; and
  • The strategic function - to work with others in the financial services industry, the devolved authorities, and the public and voluntary sectors to develop a national strategy to improve the financial capability of members of the public, the ability of members of the public to manage debt, and the provision of financial education to children and young people.

The new body will be founded on three core principles. It will:

  • Be people-focused - by putting the user experience at the heart; allowing the organisation to adapt to people’s changing needs and to prioritise services, where appropriate, for particular groups;
  • Deliver value for money - through providing a first-class service, avoiding duplication and delivering in the most cost-effective way
  • Be sustainable - by focusing on building an organisation that is fit for the future and empowered to keep pace with an ever-changing environment.

The body will be primarily funded by levies on both the financial services industry and pension schemes. The Department for Work and Pensions will be the sponsor Department for the new body, though the body will also engage with the HM Treasury, which has policy responsibility for the provision of government sponsored financial guidance and debt advice.

About the SFGB Board

The SFGB Board will be responsible for:

  • Setting and delivering SFGB’s strategic aims and objectives within the agreed policy and resources framework agreed with Ministers;
  • Overseeing the budget and financial operation, ensuring SFGB complies with the statutory and administrative rules for the use of public money;
  • Ensuring that effective arrangements are in place to provide assurance on governance, risk management and internal control; and
  • Appoint the Chief Executive and Executive Board, setting their performance objectives and remuneration with Ministerial consent.
  • As well as the Non-Executive Chairman and the Chief Executive, the SFGB main Board will include two further formal Executive Directors (the Chief Finance Officer - the CFO has already been appointed, and the Chief Operating Officer) and four to six Non-Executive Directors.
  • The Chief Executive's management team will be made up of the following;
    • Chief Operating Officer
    • Chief Finance Officer
    • Strategy & Insights Director
    • Digital, IT & Marketing Director
    • Partnerships & Commissioning Director
    • People, Skills & Culture Director
    • Board Secretary

Money Advice Service: https://www.moneyadviceservice.org.uk/

Pension Wise: https://www.pensionwise.gov.uk/

The Pensions Advisory Service:https://www.pensionsadvisoryservice.org.uk/

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