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 ...
News
The Investment ObserverSummer holidays: will a pre-paid currency card save me money?The Investment ObserverUnlike a day-to-day British credit or debit card, if the money is lost it can be automatically transferred to another card and reissued, with no chance of thieves accessing your bank account. Similarly, pre-paid cash cards often avoid the costly ...
Daily MailWhy paying taxes by credit card probably isn't a good ideaDaily MailTaxes have to be paid, and putting them on your credit card might seem a good option. Maybe you need more time to come up with the money, or you're imagining the rewards you could rack up by putting a big expense on your card. But paying the IRS with ...and more »
shropshirestar.comOne in ten young Britons would leave the UK to buy an affordable home - and a quarter think only an inheritance will ...This is MoneyOne in 10 people aged between 18 and 34 are prepared to move out of the UK in order to be able to buy an affordable home, a survey by Halifax reveals. A quarter of young people think they will never be able to own their own home, while a further ...'Mixed fortunes' for home buyers, says mortgage lending bodyshropshirestar.comall 14 news articles »
FT AdviserOver one million UK homeowners on wrong mortgage dealSunderland EchoL&C Mortgages added that by switching to a better deal, UK homeowners could save £216 each month or over £2,500 annually. Although 58% of homeowners have never re-mortgaged to save money. “Not only have we found over a third of homeowners are ...4 million families wasting £266 EVERY month thanks to a single mistakeMirror.co.ukMillions miss out on mortgage savings by staying on SVRsFT AdviserHalf of Brits have never remortgagedMortgage SolutionsProperty Wire -Financial Reporterall 47 news articles »
Wakefield ExpressOver one million UK homeowners on wrong mortgage dealWakefield Express... to cut their monthly payments,' he explained.” L&C Mortgages added that by switching to a better deal, UK homeowners could save £216 each month or over £2,500 annually. Although 58 per cent of homeowners have never re-mortgaged to save money.and more »
Have you met...
Latest Members:


mugs200


wqwq


adwhitco


Shane


marwa


ledonegm


jordanss123

 

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