A Conservative peer is calling for politicians to pile pressure on the FSA and Treasury to review the Money Advice Service, describing it as a “waste of money”.
Lord Naseby has tabled a written question in the House of Lords asking the Treasury whether it believes the MAS should be scrapped. He is due an answer by next Tuesday.
The MAS is currently the subject of a Treasury select committee investigation, is facing extra FSA scrutiny and is the focus of stinging criticism from advisers.
It has come under fire for a “collossal” marketing spend, excessive executive pay and “crap” online tools.
In the face of such attacks, Lord Naseby believes the FSA and Treasury are wavering in their belief that the industry should fund the service.
He says: “The Government will be looking at it because the FSA now believes it is wrong. The Treasury can see the MAS is being flagged up and someone is tracking it so it will be taken seriously.
“It is all grist to the mill so it would be helpful if someone in the Commons would pick it up as well.
“It is a complete waste of money and is not a service that we need. It is very hard on the advisers who should not be expected to fork out all the time.”