British Financial Services Authority publishes analysis of main risks facing consumers
Today the British Financial Services Authority (FSA) published an analysis of the main risks which potentially face British consumers in the financial services sector in the next one to one-and-a-half years.
The analysis shows that:
- consumers continue to struggle with the effects of a slower economy,
- low interest rates and
- poor returns on investments.
The results of these trends are that consumers are saving more, shopping around and pay off their debt. The FSA sees a danger in that consumers might be sold unsuitable products - everything from products that are too risky for them, to products they do not understand or that do not meet their individual circumstances.
Martin Wheatley, FSA managing director, said: “Consumers rely on financial firms and their products to provide them with vital services - literally the means to run their lives. They need to be able to trust that the products they buy work for them and that they are getting a fair deal. But our report today shows that consumers worry they aren’t being sold the right products.”
Further information: www.fsa.gov.uk/library/communication/pr/2012/025.shtml and www.fsa.gov.uk/static/pubs/other/rcro12.pdf