am
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Post by am on Oct 10, 2017 18:39:48 GMT
One of the problems with financial regulation is that it adds to financial exclusion. Excluding people from financial services in an injustice. Yes, we (as a society) do want to protect the naive, the vulnerable, and the desperate, from the unscrupulous. But we shouldn't allow that desire to cause us to prevent them accessing the benefits of financial services, and to stop them becoming less naive, less vulnerable and less desperate. I would argue that the focus should be on excluding the unscrupulous, not the naive, the vulnerable and the desperate.
I think the primary focus should be on regulating providers, not on regulating customers.
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ali
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Post by ali on Oct 10, 2017 20:59:38 GMT
I think the primary focus should be on regulating providers, not on regulating customers. I mostly agree, but I would add educating customers (or more precisely, providing the tools so that customers can educate themselves).
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jonah
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Post by jonah on Oct 10, 2017 21:18:47 GMT
I think the primary focus should be on regulating providers, not on regulating customers. I mostly agree, but I would add educating customers (or more precisely, providing the tools so that customers can educate themselves). Whilst it’s been a while since I was in school... why isn’t basic financial literacy part of the national cirriculum? Underwing debt and the issues with it, the concept of aprs, cumulative compounding interest all seem to be things people should get a basic grounding in As everyday life skills. It might reduce the percentage of people getting in debt issues over time and therefore help society as a whole. Personally I also think first aid should also be taught but that is really off topic.
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am
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Post by am on Oct 10, 2017 21:23:29 GMT
I think the primary focus should be on regulating providers, not on regulating customers. I mostly agree, but I would add educating customers (or more precisely, providing the tools so that customers can educate themselves). I don't disagree - I was trying to keep the post simple, rather than tie myself in knots trying to cover all bases.
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yangmills
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Post by yangmills on Oct 10, 2017 21:50:48 GMT
I think the primary focus should be on regulating providers, not on regulating customers. I would have agreed a decade or even 5 years ago but I think the balance has tipped too far. Initially some regulatory changes improved transparency and reduced costs. But increasingly the regulation of financial service providers is damaging choice by selecting in favour of vanilla products and large scale platforms and against alternative investments and smaller bespoke service providers. For example, in recent years regulation has forced my SIPP provider to cut back on offering a number of alternative investments (not P2P but that is also case in point). The whole move to UCIITs funds has often simply added costs. The IFA that introduced me (and many of my work colleagues) to bridge lending in 2002 would now not dare to take the risk of doing that etc. MIFID 2 is basically a complete waste of time and money.
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Oct 10, 2017 21:57:18 GMT
I mostly agree, but I would add educating customers (or more precisely, providing the tools so that customers can educate themselves). Whilst it’s been a while since I was in school... why isn’t basic financial literacy part of the national cirriculum? Underwing debt and the issues with it, the concept of aprs, cumulative compounding interest all seem to be things people should get a basic grounding in As everyday life skills. It might reduce the percentage of people getting in debt issues over time and therefore help society as a whole. Personally I also think first aid should also be taught but that is really off topic. Schools have no time or inclination to teach these things as they are not part of government measures against which schools results are judged by government bodies and future years' parents. I agree it would be good to educate students on the basics at least. Mobile phone, gym membership, net/ify etc contract clauses and what they mean financially. Before that though the simple things like the need to buy a ticket or show a current pass/ ticket when getting on a bus could be useful. Amongst other things. You know, the things parents should be showing their kids how to do instead of ignoring them because the are on their facegram twittime thingies🤔📵
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registerme
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Post by registerme on Oct 11, 2017 9:42:31 GMT
This makes for an interesting read.
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am
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Post by am on Oct 11, 2017 9:54:29 GMT
This makes for an interesting read. "Between 2007 and 2013, electricity, gas, and fuel costs rose by 61%. Over the same period, food prices increased by 31%, and transport costs by 25%" I had realised that the inflation rate experienced by the poor (and the frugal) was higher than the headline rate, but I hadn't thought it was that bad. (Subsequently food prices may have fallen as supermarket margins have been squeezed, but the period of deflation in clothing prices that I perceived seems to have ended). On the subject of financial exclusion, a bank tried to sell me a credit card once, and then refused me on the grounds that I had no salary, pension or benefits, even though I had over £100,000 on deposit with them. (Like several here I retired early, though in my case it wasn't particularly intentional.)
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Post by yorkshireman on Oct 11, 2017 13:19:37 GMT
Yes, education is required with an emphasis on financial discretion including what is a sensible price for a house as I think that obscene property prices have a lot to answer for along with a largely ignored contributor to debt problems, consumerism and individuals trying to live celeb lifestyles on average incomes taking an “I want it and I want it now” approach rather than saving for a purchase.
My comment about property prices may sound hypocritical when, like many others, I have benefited from rising prices but I consider my house to be a home, not a money machine.
Maybe what is needed, perish the thought, is a Corbyn government to make a complete mess of things in order to bring people to their senses, suggestions on how to protect one’s assets (other than houses) from the “Weasel” and McDonnell please.
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Post by df on Oct 11, 2017 15:59:44 GMT
I mostly agree, but I would add educating customers (or more precisely, providing the tools so that customers can educate themselves). Whilst it’s been a while since I was in school... why isn’t basic financial literacy part of the national cirriculum? Underwing debt and the issues with it, the concept of aprs, cumulative compounding interest all seem to be things people should get a basic grounding in As everyday life skills. It might reduce the percentage of people getting in debt issues over time and therefore help society as a whole. Personally I also think first aid should also be taught but that is really off topic. Certainly some basic financial literacy should be in the curriculum. I was working in 16+ education for two decades and can confidently estimate that at least 90% of my students had no idea about managing their finances or their financial future. They don't get this knowledge from school or their parents. I addition most of young people are now facing a massive student loan debt for the rest of their lives. No good. In my opinion the whole education system needs substantial changes in both, curriculum and funding mechanism.
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