Lord Hunt said that there was still a substantial gap between what people are saving and what they need to save for retirement despite warnings from the Government, however the gap was narrowing due to better financial advice and regulation should not constrain such advice.
Lord Hunt acknowledged the need for regulation but said that the balance had swung too far in one direction as the bureaucracy and paperwork have grown to a point where: "...too much time is spent over the process and too little on the actual giving of advice. I hope that the FSA will consider, in conjunction with the industry, how some of these burdens can be mitigated."
Independent financial advice is of great importance to those making financial decisions, acknowledged Lord Hunt, who said: "I know that advisers will rise to this challenge and look for new and different ways of making their services more available. They will have to provide a constant demonstration of their professionalism to their clients and show that they offer value for money."
In particular, he said, the provision of advice through the work place offers new opportunities for providing advice. This route was highlighted by Sir John Banham as Chairman of the Inquiry into financial advice sponsored by the Institute and Faculty of Actuaries.
