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Solving problems in the retail investment market: the FSA consults

In January I went to see the head of the FSA Retail Distribution Review team and some of her colleagues. The FSA set up this team to address the root causes and effects of problems in the distribution of long-term savings products. The fact that the FSA is on this case is good news. But the really good news is that it no longer needs persuading about the root causes. These were stated with surprising bluntness in FSA Chairman Callum McCarthy's Gleneagles speech.

The Review team has set up various industry working parties. My contribution therefore focused on what I thought those might miss, knowing how hard industry people find it to think outside their business models and, when they do, to see the profit potential in disruptive models. What the FSA was particularly interested in was my views on the enabling roles to be played by 'investment technology'. It is the key to a wide range of solutions: improving typical industry skills, lowering the need for advice, increasing ease of access to good products, reducing their costs, making the customer experience more relevant and engaging, encouraging greater personal responsibility.
Stuart Fowler on 02.04.07 @ 08:44 PM GMT [">more..]