Make saving the goal

Money Marketing is launching a campaign, Pave The Way To Save, calling on the Government to give the new financial services regulator a statutory objective of increasing saving and protection rates.

The Treasury is currently consulting on the structure of the Consumer Markets and Protection Authority which will have a primary objective of ensuring confidence in financial services and markets but will also have a number of statutory secondary objectives it must take into account.

This newspaper believes that under the current regulatory regime, the FSA has overseen policies that are likely to mean fewer people will get access to financial advice and lead to fewer people saving for the future and protecting themselves and their families.

We believe introducing such an objective would create a healthier, more constructive regulatory environment, with an important new balance introduced to policymaking.

Sesame chairman Ivan Martin says: “A more progressive and constructive approach would be entirely consistent with the shift away from the state towards private provision. We need to stimulate and grow the UK’s regular savings market, not stifle it further. We have to make it easier for people to save.”

True Potential senior partner Daniel Harrison says: “True Potential fully supports this initiative. In the past it has always been easier to get into debt than to save.”

Skandia chief executive Peter Mann says: “I would say the current advice gap is already too wide and is likely to increase with the retail distribution review and that worries me. The regulator has not been concerned enough about getting people to save.”