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Friday, June 29, 2012

THE CONSUMER FINANCIAL EDUCATION BODY

Upon further reading of the Financial Services Bill 2012 I found this regarding a consumer financial education body in Schedule 15.

3R The consumer financial education body
(1) The consumer financial education body continues to have the consumer financial education function.
(2) The “consumer financial education body” means the body corporate originally established by the Financial Services Authority under section 6A of this Act (as it had effect before the passing of the Financial Services Act 2012).
(3) The consumer financial education function is to enhance—
(a) the understanding and knowledge of members of the public of financial matters (including the UK financial system), and
(b) the ability of members of the public to manage their own financial affairs.
(4) The consumer financial education function includes, in particular—
(a) promoting awareness of the benefits of financial planning;
(b) promoting awareness of the financial advantages and disadvantages in relation to particular decisions relating to different kinds of goods or services;
(c) promoting awareness of the benefits and risks associated with different kinds of financial dealing (which includes informing the FCA and other bodies of those benefits and risks);
(d) the publication of educational materials or the carrying out of other educational activities;
(e) the provision of information and advice to members of the public;
(f) assisting members of the public with the management of debt;
(g) working with other organisations which provide debt services, with a view to improving—
(i) the availability to the public of those services;
(ii) the quality of the services provided;
(iii) consistency in the services available, in the way in which they are provided and in the advice given.
(5) In subsection (4) “debt services” means debt advice or assistance with the management of debt.
(6) Schedule 1A makes further provision about the consumer financial education body.”


This is interesting for several reasons, but the two main reasons are
1. there is a more detailed list of the kind of information that this consumer financial education body is supposed to gives us, but
2. that list is not exhaustive, i.e. this list could be considered to be the minimum that the consumer financial education body is expected to give us, and the "UK financial system" is EXPLICITLY listed in 3R(3)(a).

So what is the definition of "UK financial system"? In Section 5:
1I Meaning of “the UK financial system”
In this Act “the UK financial system” means the financial system
operating in the United Kingdom and includes—
(a) financial markets and exchanges,
(b) regulated activities, and
(c) other activities connected with financial markets and
exchanges.


NB again "includes" is not exhaustive.

And the Money Advice Centre, which is the current consumer financial education body is financed by...THE CITY OF LONDON!

Yes. That's right. The City of London has some control over what the consumer financial education body is supposed to tell us about how The City of London works because The City of London pays their wages.

The unfairness is still there, no matter how the laws are rewritten.

So what needs to be done with my argument?

Instead of referencing FSMA 2000 Section 4 I can simply reference Financial Services Bill Section 5. FSMA Section 5 can be replaced with Financial Services Bill 2012 Section 5 because that's where the consumer protection stuff is.

The Financial Services Bill is very big with information and definitions very scattered.

But it also has the appearance of a rushed and amateurish piece of legislation.

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