MANY firms in the financial services sector offer poor quality products which fail to live up to promises.

According to a report by the Consumers Association, firms are failing to deliver quality in the areas of long-term savings and pensions. It says regulation of the sales process through disclosure has failed, leaving consumers at a severe disadvantage when choosing financial products. But it believes the creation of the super City watchdog the Financial Services Authority has provided an opportunity for a radical rethink of financial services. It stressed the SFA should regulate products, not the process, to raise standards in the financial services industry. Documents giving key details of products have failed to inform consumers and overcome the lack of confidence and knowledge many of them have about such products.

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