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The FSA has refuted claims it is failing to fulfil statutory obligations to provide consumer financial education.
Simon Goldthorpe, director of Beaufort Asset Management, said part of the FSA's statutory objectives to promote market confidence and financial stability can be met by providing positive information for consumers.
"Most of the education that flows from the FSA is negative, dealing only with widespread complaints, class actions and wealth warnings," said Goldthorpe.
"This needs to be counterbalanced by simpler messages about the benefits of saving and general tips on how to create financial security.
"Without this balance the negative outpourings result in the savings and investment industry being viewed by the public with fear and suspicion."
However, a spokesperson for the FSA said responsibility for consumer financial education was transferred to the Consumer Financial Education Body (CFEB) by the Financial Services Act last year.
"The obligation now rests with CFEB, which has just launched the Money Advice Service (MAS)," said the spokesperson.
""We have obligations to promote financial stability and market confidence, but that is only in a regulatory perspective and it is a completely different area."
However, Andrew Melbourne, chartered financial planner at Square One, said the MAS is not enough to improve consumer knowledge.
"CFEB and MAS only work if you know to look at them," said Melbourne. "People need to be told, and just having a website on its own will not work."
Melbourne added the government should add a six-week course for 15 and 16-year- olds to the curriculum, covering how banks work, how to get a mortgage and how to handle student finance and debt.
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| Comment | FSA: Financial education is not our responsibility |
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They are like a virus
Once you've got VD it just spreads. They've created the "CFEB" and the Money (non) Advice Service, but if we ask for a reduction in our FSA fees to cover it, they'll just take a different levy for the CFEB. Another head honcho and anotehr head honco's salary. If it is education and is clearly that, the CFEB should be entirely funded by taxation NOT by the industry as some of our clients are not much better off than those who choose NOT to take advice.
Posted by: Nameless
They are like a virus
Once you've got VD it just spreads. They've created the "CFEB" and the Money (non) Advice Service, but if we ask for a reduction in our FSA fees to cover it, they'll just take a different levy for the CFEB. Another head honcho and anotehr head honco's salary. If it is education and is clearly that, the CFEB should be entirely funded by taxation NOT by the industry as some of our clients are not much better off than those who choose NOT to take advice.
Posted by: Nameless
Interesting
In fact I’m rather pleased with this admission. Now it is to be hoped that the Regulator will also admit that nor is it our responsibility. In which case we can probably cut down the length of our reports by 50%. Can we really expect a change of heart in so far as the Regulator now recognises that the public have a certain responsibility for themselves and cannot rely on the incessant nannying so prevalent in today’s world? I do hope so.
Posted by: Harry Katz
At Last
As the door closes they finally admit that they really do not know what they are doing.
Posted by: Terence O'Halloran
NOT RESPONSIBLE....JUST IRRESPONSIBLE
So, the FSA are not responsible for financial education. This is a relief after their crass management of the banking crisis, and quite evident after the RDR pantomime. FSA Recruitment Advert: Ideally suited to an individual who has no experience of financial services. Must be able to type 146 emails per hour and attend 432 meetings per year. Having 'teflon' shoulders an advantage but not essential as training will be given. No qualifications required. Driving not essential as pool car available. Must be prepared to be sworn to secrecy over amount spent on hospitality. Starting salary £100k with regular increases in line with regular fines issued to IFAs.No applications refused as we will create jobs anyway.
Posted by: Keith Jayne
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