Clued-up consumers are FSA goal

In its Annual Plan and Budget for 2001/02, the FSA sets out a range of initiatives to help consumers make informed decisions and choices and to help reduce the risk of mis-selling.

Proposed measures include plans to launch an interactive adult learning programme and to develop workplace education projects designed to reach consumers at key life stages.

Other developments during the next year will include:

• new help for teachers to bring personal finance issues into the school curriculum;

• the launch of Comparative Information Tables - a new on-line service offering consumers the chance to compare the features of particular types of financial products;

• further progress to improve disclosure, so the information consumers receive at the point of sale is easier to understand;

• a pilot project in 1,400 main Post Offices throughout the UK to display and distribute information about the FSAs services for consumers;

• further investigations into, and action against, firms which have mis-sold financial products; and

• the introduction of new rules on complaints handling, paying compensation and unfair contract terms.

The FSAs Director of Consumer Relations, Christine Farnish, said:

There remains an alarming lack of understanding of financial products amongst large sections of the public. It is precisely this lack of understanding that can lead to people being saddled with long term and expensive financial products which are not suitable for them. The results are all too obvious the review of mis-sold personal pensions alone is expected to cost some 11.5 billion in compensation. Clearly, better informed consumers should be a key priority for all including the financial services industry itself.

By raising consumer awareness of financial services, we can help to reduce the likelihood of mis-selling, and help consumers get the fair deal they expect and deserve.

The work we have done so far has already shown promising results. Our innovative work on raising the financial capability of schoolchildren is helping to ensure future generations of consumers are more clued up on money matters, while our adult education initiatives will bring much-needed help to todays consumers.

But we are under no illusions about quick fixes. This is inevitably a long-term process. And we will, of course, continue to ensure proper protection for consumers.

Notes for editors

1. The FSAs Annual Plan and Budget 2001/02, published today, is available on the FSAs Website at www.fsa.gov.uk/pubs/management/index-2001.html

2. A range of consumer guides and factsheets are available, free of charge, from the FSAs Consumer Helpline, on 0845 606 1234, or can be downloaded from the consumer help website at www.fsa.gov.uk/consumerhelp.

3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

4. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.