The FSA has set out a major national strategy for improving financial capability.
The financial capability steering group, which was set up by the FSA to look into ways of improving financial capability, has identified seven key areas – schools, young adults, work, families, retirement, borrowing and advice – that will be developed and implemented by seven working groups.
The FSA is also planning to carry out a national benchmark study which will measure consumer confidence and understanding of financial matters. It hopes this will help to measure progress of the strategy.
The FSA expects the majority of funding for the programme to be provided by partner organisations but will work out who is best placed for funding when the working groups report back with full proposals.
The AITC supports the concept but director general Daniel Godfrey believes if it is going to be fully effective adequate resources and funding need to be devoted to it. He says the industry must provide sufficient funding to the regulator to deliver it.
FSA chief executive John Tiner says: “Improving the financial capability of people in the UK is a big challenge. The seven projects highlight the scale of the programme that we need to put in place if we are to start to make real improvements in general financial understanding.”