Recent financial market turbulence has left people so confused and afraid about their finances that the government needs to act to help restore confidence in the financial services industry, according to the author of a landmark study on financial advice.

Otto Thoresen, head of Aegon UK, says ministers need to make wider public access to professional advice a key part of its response to the ongoing problems in the world's financial markets. These have left consumers struggling to understand a dizzying series of developments including drastic falls in the share prices of leading banks, which are held by many pension funds and popular investment vehicles.

"Recent market turbulence means the need for clear financial advice has never been more acute," said Thoresen, who recently completed a study for the Treasury into how a universal financial advice service could work.

"People from all walks of life are looking for advice, help and guidance to calm their fears and address their concerns."

At a fringe meeting at the Labour Party conference in Manchester, Thoresen said heightened economic turmoil had increased the urgency for, and the importance of, the financial advice agenda.

Policymakers had to ensure the necessary help was available to let all people cope confidently with their increasing financial responsibilities, and was not limited to the wealthy, or the very poor or heavily indebted.

The Financial Services Authority should make sure its ongoing review of the retail distribution of financial products broadens access to advice for all and delivers the reforms needed to begin to restore consumer confidence in the financial services industry.

Thoresen wants the government and FSA to join him in reviewing progress early in the new year.

In March, Thoresen proposed a new money guidance service that would be supported by a levy on FSA-regulated firms, consumer credit firms and National Savings & Investments, and governed by the principles of impart iality, supportiveness, crisis prevention, and universality.