FSA releases consumer risks report

Issued: 13th March 2012

Consumers could be set to benefit from a new report analysing the main risk they face in the financial services sector over the next 12 to 18 months.

The Retail Conduct Risk Outlook report, produced by the Financial Services Authority (FSA), says consumers could face the effects of a slower economy, lower interest rates and poor returns. According to the findings of the FSA, many people are attempting to tackle these obstacles by saving more, shopping around and paying off debt.

The result is that for many consumers, one of the major risks being faced is the danger of buying and being sold unsuitable products. These products can range from those that a too risky to those products they do not understand or those that fail to meet their individual circumstances. The report also looks at the wider external factors on the economy, the pressures facing certain firms and the overall impact on consumers.

The FSA hopes the findings will help firms to understand, reduce and avoid risks. 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.”

The FSA believes that early intervention is crucial in any instance of mis-selling.