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