1. Institute of Money Advisers Annual Conference & AGM 2016
“Celebrating 10 years as the IMA”

2. Introducing the Standard Financial Statement
Gary Harvey
Stakeholder Engagement Manager
Money Advice Service
Institute of Money Advisers Annual Conference and AGM 2016

3. Institute of Money Advisers Annual Conference and AGM 2016
What is the SFS?
A single format financial statement for use by advice agencies and creditors
A single set of common fixed and flexible expenditure categories
One set of spending guidelines (or trigger figures)
A savings category to build financial resilience
Developed in collaboration with major advice providers, creditors, trade bodies and others
Institute of Money Advisers Annual Conference and AGM 2016

4. Institute of Money Advisers Annual Conference and AGM 2016
Savings category
Savings category has been introduced
Expected to build savings behaviour and increase resilience to financial shocks
Understanding from major creditors this concept could aid sustainability of repayments
Non-mandatory. Limited to up-to-10% of monthly budget surplus with a cap of no more than £20
Institute of Money Advisers Annual Conference and AGM 2016

5. Testing and transition
Format of the SFS has been agreed by the governance group
User testing with front line debt advisers and creditors undertaken, with amendments made
Testing of format and spending guidelines ongoing
Implementation pilots completed with two systems
New website will handle licencing for use of SFS
Transition period to allow move from current statements to SFS
Institute of Money Advisers Annual Conference and AGM 2016

6. Institute of Money Advisers Annual Conference and AGM 2016
Spending guidelines
Spending guidelines yet to be released
Needed format finalised first
Currently working on latest LCF survey released in May
MAS have identified volatility in LCF survey data which could make spending guidelines jump wildly up and down in coming years
We are testing a model using two years of LCF data to smooth results like these
Otherwise methodology for SFS is based on that of the CFS
First iteration expected in Summer
Institute of Money Advisers Annual Conference and AGM 2016

7. Institute of Money Advisers Annual Conference and AGM 2016
When will it launch?
Collaborating with stakeholders on implementation timelines
Dependent on timelines, we anticipate a launch late 2016 / early 2017
In process of planning further training events and materials
Entering Scottish legislation
Engagement programme
User guidance and licensing to be agreed
Institute of Money Advisers Annual Conference and AGM 2016

8. Institute of Money Advisers Annual Conference and AGM 2016
Demo of the Excel tool
No major changes for income
Several categories have moved from flexible outgoings (with spending guidelines) to fixed outgoings
Travel
Health costs (prescriptions, opticians, dentist)
School trips
Clearer separation of flexible costs
Many of CFS ‘Other’ category redistributed across three SFS flexible expenditure categories (toiletries, leisure courses, hobbies)
Savings tab, debt management fee, comments split
Institute of Money Advisers Annual Conference and AGM 2016

9. Institute of Money Advisers Annual Conference and AGM 2016
Group task
Initial reactions
From SFS launch, what do you need from MAS to aid smooth transition? Consider communications, printed material, training, systems etc. Opinions on useful training materials for advisers – online, workshops, video / webinars etc.
Discuss how advisers see a savings category operating in practice. Are the boundaries clear? To what extent do they see clients currently making savings contributions?
With a greater focus on providing useful commentary with the SFS, what do advisers view as current best practice regarding notes supplied with statements? What is the split between statement and covering letters?
Institute of Money Advisers Annual Conference and AGM 2016

10. Institute of Money Advisers Annual Conference and AGM 2016
Questions & contact us
Contact for SFS
Download the 2014 consultation paper
Download the consultation response
Visit the SFS website
Find out more about our debt work
Download the latest publications relating to our debt work
Institute of Money Advisers Annual Conference and AGM 2016