The Consumers' Association says that the FSA's proposals in its consultation paper on the draft rules governing the sale of financial product have missed the point and will not help get consumers better products and advice.
Mick McAteer, senior policy advisor at the CA, says: “All along we have said that the FSA's determination to abolish polarisation misses the point. These proposals don't address the real problems in the financial services industry. Instead they will introduce more confusion in an already complex market under the guise of more choice.
“Consumers do not need more products, they need better quality products and consumer focused unbiased advice. There is nothing here that will help deliver those needs. The big banks and insurance companies thrive on confusion marketing. This will make it more difficult for consumers to get access to unbiased advice and allow the banks and insurance companies to push up costs.
“There is nothing here that introduces a level playing field for competition. Providers who do offer good value products don't stand a chance against the big banks that have a big pool of existing customers and will be able to finance this battle for market share.”