A stable, well-functioning financial market for allA stable, well-functioning financial market for allThe consumer and advice
FI considers that the rules governing financial advice have resulted in notable improvements for the consumer. This is demonstrated in the study The consumer and advice, which was recently published by FI.
Finansinspektionen has examined how well companies follow FI's rules concerning financial advice. The study has included 17 companies in the banking, securities and insurance sectors.
The study indicates that:
- the companies have introduced and employ the administrative processes required by the rules
- the competence of advisors meeting the consumer has been enhanced
- the advisory process has been formalized and has therefore been made clearer for the consumer
- the companies demonstrate more clearly for the consumer if they are marketing the product or providing advice
- the set of rules and regulations are functioning well and have not impeded growth of the business area
FI believes that the study demonstrates that the set of rules and regulations have resulted in increased security for the consumer since the advice has been structured and is documented. It should therefore be considered if there are sections of the Financial Advice Act (the law regulating the provision of financial advisory services for consumers) that can extend to other areas requiring protection, such as areas of the credit business not already covered by consumer legislation.
During 2006, FI will continue to examine how well companies apply the new rules.
