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Survival is the priority for the public

Editor’s comment of the week

Response to last week’s column by Paul Farrow

There is a common trend within financial services and whether we are discussing the RDR, investment trusts, the pension or protection gaps the echoing response is the same – the greater bulk of the public does not care.

Life today is a search for the next quick fix or one of survival. Consumers, in the main, do not want to be educated nor do they react to advertising about what is happening and/or what they should be doing.

This harsh reality is one that most advisers can relate to and we do not need an industry-funded KPMG research unit telling us this stuff. This reality shows why so many consumers use their bank when we all know this is not the best conduit for financial advice.

It shows why claim parasites transact business when consumers could save 30 per cent by doing it themselves. It shows why, regardless of the brochures and suitability letters sent, many consumers have no idea and little real interest in the products they buy.

This is why endemic problems arise which then become categorised as misselling. If regulators were able to recognise this reality instead of trying to foist their views of financial Nirvana, the world would work in a smoother, less cluttered and less adversarial manner.

Alan Lakey

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