9th March 2012
The Financial Services Consumer Panel recently responded to the attempt to establish a high level principle in the Financial Services Bill that consumers are responsible for their decisions. Adam Phillips, Chair of the Consumer Panel, commented: "Clearly consumers need to act sensibly when making decisions about financial services. However, all too often the products they are being sold are so complex and the risks involved so obscure that it is impossible for them to make reasoned decisions.
"This is why the Panel believes that the new Financial Conduct Authority should be able to make rules to impose fiduciary responsibilities on the industry. This would ensure that consumers could be confident that the firms would act responsibly and treat them fairly."
Complexity has undoubtedly contributed to many financial scandals in the past and Phillips is not the first to draw attention to the problem. Adair Turner gives his views in a speech at Mansion House: