Financial awareness given to consumers free by Banks

Customers will be given free lessons pay by the banks in financial awareness, the plans are set to be in the Queens speech. A new levy imposed on the banking industry will fund the agency.

A financial education agency will offer consumers personal finance advice including how to calculate compound interest rates and understand mortgage deals. This is part of the Financial Services Bill which will tighten bankers’ bonuses.

The FSA currently runs the financial education, but the job will now be done by a new independent Consumer Education Agency. Financial education for children will remain the responsibility of schools. However banks plan to resist extra levy.

“Banks already put money into financial education and capability schemes and support including financial education in the national curriculum.” The British Bankers’ Association says.

However if the Tories come to power they plan to scrap the FSA and pass the responsibility to the bank of England. To read more on this story go to ifaonline.co.uk. What do you think of free lessons in financial awareness given by banks? Where does that leave the financial advisors role in this industry? Let us know your thoughts.