The government is to emphasise the need for financial education with the creation of a new body with a specific brief to educate consumers about financial planning.
The creation of the Consumer Financial Education Body (CFEB) was announced in the Financial Services Bill now before parliament and will be staffed by 160 staff drawn mainly from the Financial Capability Division of the Financial Services Authority (FSA).
Although the FSA will have “certain oversight responsibilities†for the new body, the CFEB will be independent, with its own CEO, chairman and board.
The operations of the CFEB are likely to include a national telephone adviceline, a website and face-to-face financial guidance.
According to the information provided on the brief of the new body, the CFEB will aim “to make a tangible difference to quality of life for millions in the UK, by helping them to manage their finances effectively and avoid getting into unmanageable debt.â€
The Treasury has estimated the cost of the new service in the long-term at up to £2.7bn.
