Sarah Pritchard has spoken of how considering the individual characteristics of consumers is critical to helping their financial well being. She said the FCA is working on guiding consumers on what is best for them in the context of their financial lives.
She focussed on the two main challenges of the moment:
- understanding pensions and saving appropriately: the FCA is aware that many consumers aren’t saving enough, are accessing savings too quickly and broadly don’t understand enough about pensions to know what their choices really are. The FCA is trying to help here by introducing targeted support and with its work on pension dashboards;
- the difficulties of buying a first home: consumers struggle to find a deposit and increasing numbers rent through retirement. The FCA is committed to supporting people who are renting to buy a home if they want to, which more than half of them do. It promises more regulatory initiatives to bolster what it has already put in motion. It is also aware of the need to advise consumers looking to use their housing wealth to support them in later life. And part of this is to stop advice across different areas of financial life being siloed.
She also spoke of the FCA’s initiative to reset its rulebook, and regulate more smartly, and its drive to encourage more consumers to invest rather than save – but to give them the support they need to do that. She said the FCA wants and needs discussion on where the balance of regulation should be. The FCA is still hoping the Consumer Duty has done its job and that provided it continues to work in practice, the FCA won’t need to make more consumer protection rules.