Treasury financial secretary Mark Hoban has rejected Money Marketing’s call for the new regulator to be given a specific objective of increasing saving rates and protection levels.
Speaking at the Conservative conference this week, Hoban said MM’s campaign goal would set up the Consumer Protection and MarketsAuthority to fail. We disagree.
Giving the CPMA a statutory objective to “have regard” for increasing saving and protection levels would create a more balanced and constructive regulator.
This is not about creating hurdles to trip up the new regulator or handing out gold stars or wooden spoons depending on specific targets being met. It is about creating a shift in regulatory focus to ensure policymaking encour ages rather than restricts access to decent saving and protection products.
There is concern that the retail distribution review will lead to fewer people getting access to advice as adviser numbers drop and clients are shed.
This outcome has been created because the FSA’s policy objectives are skewed far too much towards a narrow view of consumer protection without paying enough attention to the dangers of consumers not saving enough or failing to protect themselves.
As Prime Minister David Cameron continues to preach about a big society which empowers individuals it seems strange his Government is so quick to reject ideas that look to encourage personal financial responsibility.