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:
- Tui Travel tipped as a "Buy" despite global unrest hitting bookings
- 10 investment mistakes and how to avoid them in the 2016 ISA season
- Bad news for half-term holidaymakers as pound falls to one-year low against the euro
- Savers urged to act fast to make the most of higher rate pension tax relief while it still lasts
- Pension drawdown risks in the spotlight after another painful day on the markets
- Mortgage rates may be low but fees have surged to a near two-year high
- Five tips to ensure a successful home insurance claim
- Pension funds fall 2.5% after a turbulent January
- Expert comment: "Time to hit the panic button?"
- Commodities cast a long shadow over earnings season