The Single Financial Guidance Body (SFGB) is set to be renamed as the Money and Pensions Service.

Legislation put before parliament today (4 March) detailed that the name change will take effect on 6 April 2019.

The parliamentary approval for the change was being held up due to ongoing Brexit negotiations, but the new name has now been announced.

The guidance service combines The Money Advice Service, The Pensions Advisory Service and Pension Wise into one organisation.

Aegon pensions director, Steven Cameron believed that “an important next step” would be to switch the industry from directing customers to the existing guidance services “with a single signpost to the Money and Pensions Service”.

He continued: “Before this can happen, John Govett and his team will need to put in place the behind the scenes processes to channel individuals effectively to the service they need.”

Industry experts appeared to agree on the suitability of the new name. Cameron explained: “We’re pleased that its new name, the Money and Pensions Service, avoids using the word ‘advice’ which should help individuals recognise the difference between the guidance it will offer and the advice they can obtain from professional regulated advisers.”

AJ Bell senior analyst, Tom Selby voiced his agreement: “The government has dodged any potential controversy around the use of the word ‘advice’ in the name of the new guidance body by steering clear of it altogether.

“Given the negative attention this drew when the Money Advice Service first launched this feels like a sensible decision.

“The launch of the new, simplified guidance service provides an opportunity for the industry as a whole to renew focus on retirement communications.

“There is a growing body of behavioural research pointing to the fact the existing framework – which often sees savers bombarded with pages and pages of information – fails to improve engagement.”

The Money and Pensions Service went live under its previous name, the SFGB, on 1 January 2019, and aims to improve financial advice to people and make the guidance easier to access.

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