Lipsey slams FSA for "dangerous imbalance" in consumer representation
Share
Speaking at the Aegon and Social Market Foundation consumer behaviour debate today, Lipsey said his requests for more staff were rebuffed by the regulator.
He said: “I asked for an increase in staff for the consumer panel which was running at two, but I was told no. There is a dangerous imbalance in the representation of consumers to the industry.
“The FSA board is run by bankers and no one there can be regarded as a representative of consumer interests.”
Also speaking at the event was Financial Secretary to the Treasury Stephen Timms who stressed the importance of providing consumers with incentives to save.
He cited personal pension accounts, tax relief on Isas and child trust funds as successful examples.
Timms also said financial institutions and banks must re-build consumer trust in order to encourage the public to save.
He said: “Trust has taken a bit of a knock over the past few months but the Government has been careful to ensure no onshore saver has lost money in the past six months.”
But Money Saving Expert’s Martin Lewis warned delegates that it’s more important for people to pay off their debts before they look seriously at saving.
Aegon head of corporate affairs Francis McGee said the advice industry needs a “radical rethink”.
He said: “There’s too much focus on existing models rather than creating a new framework to allow new models of advice and guidance more in tune with what people want.”
