The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
Financial TimesSelf-employed earnings, Brexit dividend windfall, mortgage compensationFinancial TimesIn spite of concerns over how business friendly the divorce settlement with the EU will be, this year's UK dividend windfall is on course to surge above £5bn, according to the Capita UK Dividend Monitor. Since the Brexit vote, the falling pound has ...
Profile: 'Mr Sipp' John Moret talks regulation and rebirthMoney MarketingBut it was Nigel Lawson's 1989 Budget speech that paved the way for Sipps, enabling people to invest their personal pensions in unit trusts, equities and commercial property. Moret found this investment freedom instantly appealing. “These are natural ...
This is MoneyDoes your mortgage lender owe you money? this week, the Financial Conduct Authority (FCA) – the financial regulator/watchdog of the UK – revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender, and are ordering firms to start paying people back.UK mortgages lenders face compensation bill for mishandlingLondon South East (registration) (blog)More than 750000 mortgage borrowers in line for compensation after lenders overcharge them for late paymentsThis is MoneyThousands of mortgage arrears customers to get redressBBC NewsEagle Radioall 82 news articles » rates will rise, but it won't be the catastrophe some with the fall in the pound and the fall in the value of British government bonds, or gilts, has come the to-be-expected rise in the underlying interest rates that drive the cost of mortgage borrowing. Called “swap rates”, these register the price ...and more » (blog)Pensions, borrowing, gambling and credit (blog)Pensions, borrowing, gambling and credit cards ... UK government borrowing hit £10.6 billion in September, £1.3 billion higher than September 2015. ... [Alt-Text]. Bookmakers will be brought before the competition watchdog to explain why the industry ...and more »
Have you met...
Latest Members:

Tisa smith








Empowering consumers through improving financial capability

Lord Turner, chairman of the Financial Services Authority (FSA), said today that a clear regulatory commitment to deliver consumer protection needs to be combined with policies to build customer capability.
Speaking at the FSA’s Financial Capability ‘Helping Consumers through the Recession’ conference in Cambridge, he outlined the increasing importance of protecting consumers through regulation but said that this must be dovetailed with improved consumer financial capability.
Lord Turner said: “It is common sense that people armed with skills, such as budgeting and planning ahead, as well as up-to-date information about new products, will be better able to cope with what life throws at them. It is also common sense that consumers will be more confident and trusting if they know a robust system of consumer protection is in place to ensure firms act in good faith.”
The FSA’s financial capability programme aims to enable better informed, educated and more confident consumers, who are able to take greater responsibility for their financial affairs and play a more active role in the market for financial services. Individual projects focus on specific groups in the population, targeting information and help to the specific circumstances they are facing. These groups include new parents, young adults, students, employees and people in further or higher education, as well as people requiring generic money guidance. This year’s conference will explore ways to reach people facing redundancy, the unemployed and hard-pressed families.
However, Lord Turner stated that education, guidance and capability won’t, by themselves, empower consumers. Consumers need to be confident that firms will protect their interests, confident the regulator will make sure that happens and confident that there are safeguards in place if things go wrong.
This is why, in the last 12 months, the FSA has:
o    increased compensation limits for depositors, dramatically increasing financial security for consumers
o    taken swift action to ensure firms didn’t apply unfair terms in tracker mortgages which would have allowed them not to pass on base interest rate reductions
o    moved decisively to ensure that when consumers seek out independent advice, that they are receiving the best product for them, not simply the one which gives the adviser the best commission
o    pushed forward on reforms to the payment protection insurance (PPI) market, for example on single premium PPI
o    started preparing enforcement actions against firms it recently investigated regarding their mortgage arrears practices

Lord Turner went on to state that markets may not always work for the consumer and, sometimes, human behaviour means that too much choice can result in consumers taking no action. This means that radical questions need to be asked about how financial markets function and how the regulator should respond. These questions include:
o    Can there be too much innovation in some markets – with complexity acting as a barrier to understanding?
o     Are some products too complex to be sold to consumers at all?
o    Should we be prepared to intervene on pricing, even at the expense of access to the market for some people?

Lord Turner concluded: “I don’t pretend to have all the answers to these questions today. Or, indeed, that there are blanket answers that apply to every market or product. But what is clear is that consumer protection, financial capability and market intervention to protect consumers needs to be seen as part of an integrated strategy. And this needs to be grounded in an understanding of what role each element plays in empowering consumers and building their confidence in the market.”

Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks