New agency set up to offer financial advice to those with money problems

A new agency has recently been set up in London to offer financial advice to the many people in the UK that are struggling financially. The financial advice that is offered is impartial and free, and it could help the many people that have found themselves getting in to greater and greater levels of debt over the past couple of years as a result of the financial crisis and the credit crunch.

The advice is being made available through the new financial agency, called the Consumer Financial Education Body, and the agency will take over this responsibility from the UK financial regulator the Financial Services Authority. Many consumers have sought financial advice over the last couple of years, which have been very turbulent in terms of finances, and millions are said to have benefited from advice from the financial regulator.

The FSA needs to focus on the regulation of individual firms, and therefore having the CFEB take over the provision of financial advice will free up more time for the FSA and take some of the pressure off for the regulator. A number of sources will be used to fund the new agency, and this includes the fees paid by financial companies that are regulated by the FSA. The new service should see consumers being able to access valuable advice regarding their debts and financial situations.

Tony Hobman from the new agency said: ‘People need access to the knowledge, confidence and support to take control of their money and choose products and services that meet their needs.The FSA has laid a tremendous foundation for financial capability and money guidance. I look forward to building on these achievements, taking CFEB forward and helping many more people make the most of their money.’