FTA: Do you think advisers have a role to play in helping more people manage their money better?
MM: I do think the financial sector is overly complex and expert independent advisers are beneficial for most of us.
The financial world is only getting more complicated and if everyone had the right helping hand it could make a big positive impact on society.
FTA: What could advisers do in practice to provide meaningful help to people, bearing in mind that they too have a business to run and have a huge compliance burden for any regulated advice?
MM: I think the most important question is how do you compensate an adviser for their time.
If it’s a private market, there will be people not able to afford it. If it’s paid for by commission on products, there will be possible questions regarding conflicts of interest. If the government or a charity plans to fund advice, there might be concerns around quality and integrity.
In truth, there are a small number of simple actions people need to follow to avoid the biggest trouble.
If this could be studied and agreed, it might be as simple as providing this guide and letting an adviser understand someone’s unique situation to help them tailor the advice.
This might make the process less costly and thus scalable to reach the greatest number of people.
FTA: Have there been any interesting developments lately that might signal how technology could help the broader masses manage their finances?
MM: Tech has a huge role to play and is probably the best first step for those looking for help and structure before bringing in a human adviser.
At the most basic level – and the thing that will likely have the biggest impact – is looking at income and outgoings and see how to maximise what people are getting from every penny spent.
Switching to own-label groceries can save £500 a year. Haggling on things like broadband and mobile contracts can save hundreds.
Making sure you’re accessing all the cashback, discounts and vouchers available can make spending money go a lot further. There are a small number of actions that can create huge benefits.
carmen.reichman@ft.com
