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‘The public needs educating financially’ says FSA

Brits need to learn new skills in order to choose the right financial products, according to the Financial Services Authority.

People need to be educated financially if they are to make informed and confident decisions about financial products, according to Lord Turner, chairman of the Financial Services Authority (FSA) (www.fsa.gov.uk).

Speaking at the FSA’s ‘Helping consumers through the recession’ conference in Cambridge last night, he said: “It is common sense that people armed with skills, such as budgeting and planning ahead, as well as up-to-date information about products, will be better able to cope with what life throws at them.”

However, Lord Turner added that education and guidance won’t be enough by themselves to empower consumers. He said that the FSA must also protect consumers through regulation and put safeguards in place in order for consumers to feel confident about taking out financial products.

In April this year, the FSA launched Moneymadeclear (www.moneymadeclear.fsa.gov.uk), a service offering practical and impartial help and information on money matters for people in the North East and North West of England.

The FSA’s wider financial capability programme also targets specific groups across the country, including new parents, young adults, students and employees.

Earlier this week, the FSA released plans that could see financial companies forced to reveal how many complaints they receive and how these complaints are dealt with.