FSA: Financial education is not our responsibility

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.

“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.

Source: www.ifaonline.co.uk/news