Prevention or cure, short term or long term, cheap or expensive, problem solving or problem postponement?
Which of the above statements would you associate with Government of our day? It could be all of them, some of them, and for some of you – none of them, and that is your right. But you also have a right to be protected by Government. As their efforts are now being judged more closely than ever, we ask, re-arranging the famous quote by John F Kennedy, what your country can do for you?
The Government civil servants have been hard at work drawing up a new document “A better Deal for Consumers” which the Secretary of State for Business and Innovation…(oh and Skills) have presented to parliament. Hurray….they cried. No doubt they’re chuffed to bits to be seen to be doing something for the indebted British public. Finally something positive to talk about. But will this really help solve the problem? Is it the cure we’ve all been waiting for? Is it a long term plan or a cheap headline winner for short term gain? With all the political scandal of recent months, one can’t help but question the motivations behind this – genuine…or not?
Well they talk a good talk. I’ve been through the document and yes, there’s a great deal of good ideas being mooted about. Its all well and good but so many of these papers get created for good moral, and yet it’s months or years before the “action” sees any light of day.
One thing, however, which was visibly missing from the formula of their paper, is public education.
It’s clear to everyone that the public need re-educating in relation to financial products and services. The better informed they are, the more likely they’re able to spot the good deals form the bad. How many of your clients would have thought twice if they truly understood the terms and conditions of their loan or credit card agreements? This, in conjunction with a policy of financial product transparency, enforced by the FSA and the BBA would in a true market economy – cut the rogues out of the game.
Education at a core level would mean that less tax payer’s money was needed to clean up messes like the one we’re in now, so why wasn’t it in their paper? Ah – I hear you say…the banks! Is it in their interest to deal with an uniformed public? Mmmm. After all, they have made, and still make, a great deal of money out of the fact that the British public aren’t as informed as they should be regarding their financial rights and or the financial products they sign up to.
So where is that protection from Government? Instead of trying to do it all for us, why don’t they empower the public with the right knowledge and back it up with clear and transparent regulation and policy?
Prevention or cure? Education is prevention – providing a long term solution for everyone. Education may cost more but will save millions in the future, and it deals with the issue head on.
Whilst we wait with baited breath to see if Government will put money where their mouth is, I call to action Intermediaries – this is YOUR chance to educate your clients – teach them and encourage them to learn. Empowering them will in turn, help build your relationship with them. With trust comes a mutually beneficial, long lasting commitment, where they would look to you for future guidance in their financial decisions.
