Money guidance is different from financial advice. It’s important you know the boundaries when supporting your customers.
We recognise the word ‘advice’ has different meanings in different contexts. In the context of money, giving “Advice” is a regulated activity. Only firms that are regulated by the Fincancial Conduct Authority (FCA) can offer this.
The Money Guidance Competency Framework is for non-regulated money guidance. A helpful definition of the difference of guidance and advice is below*
Money guidance practitioners do not provide personal recommendations for financial products, or recommendations on a specific course of action. However, money guidance practitioners do need to have a general and broad knowledge of the range of financial products and services available in the market place.
*Adapted from the suggested definitions of advice and guidance as part of the HM Treasury/FCA Financial Advice Market Review (FAMR).