Will RDR create an ‘advice gap’?
- 9 March 2012
The Financial Services Consumer Panel recently responded to the attempt to establish a high level principle in the Financial Services Bill that consumers are responsible for their decisions. Adam Phillips, Chair of the Consumer Panel, commented: "Clearly consumers need to act sensibly when making decisions about financial services. However, all too often the products they are being sold are so complex and the risks involved so obscure that it is impossible for them to make reasoned decisions.
"This is why the Panel believes that the new Financial Conduct Authority should be able to make rules to impose fiduciary responsibilities on the industry. This would ensure that consumers could be confident that the firms would act responsibly and treat them fairly."
Complexity has undoubtedly contributed to many financial scandals in the past and Phillips is not the first to draw attention to the problem. Adair Turner gives his views in a speech at Mansion House:
- An end in sight for PPI calls as financial watchdog sets 2018 complaints deadline
- Leading trade body calls for single rate of tax relief on pensions at 25% or 33% as current system "benefits the rich"
- Bank account review - Which? calls for compensation for customers suffering poor service
- Avoid a Hallowe'en horror by remembering to switch energy deals warns Gocompare
- Why the price of oil has “changed for a generation”
- Virgin to offer half price refund for West Coast trains more than half an hour late
- Lloyds shares to be offered to the public at a discount
- Confidence in house price growth remains robust despite the threat of higher interest rates
- Employers attack training levy as 'little more than a tax on business'
- Pensions tax relief consultation: “Constant change can be detrimental”