A review into financial advice services will look at how the market can work more effectively for consumers, the Treasury has announced.

The Financial Advice Market Review will:

• look into the current regulatory system and explore whether it allows businesses to grow their businesses with affordable and accessible financial advice
• examine the gap in advice quality between hardworking but not wealthy people and those with significant wealth
• come up with ways to encourage consumers to get financial advice and remove obstacles that currently deter them.

The Treasury will work with the Financial Conduct Authority and a panel of expert advisers to conduct the review. The review will consider all types of financial retail products, including pensions and mortgages, and will aim to produce a report before Budget 2016.

The government will also look into how their free and impartial guidance provisions under the pension freedoms can be made more effective later in 2015.

Economic Secretary to the Treasury Harriett Baldwin said the review will “explore what more can do done to make sure consumers can access high quality and affordable advice”.

Gillian Guy, chief executive of Citizens Advice, said:

“This review is a welcome step and we look forward to working with the government to ensure the market works for all consumers, and that there is a strong offer of free, independent money and debt advice services to help people get to grips with their finances and empower them to make the right decisions for them.”