Call to ban complex money products
The Financial Services Authority (FSA) has warned that some financial products are too complex for consumers to understand.
Chairman Adair Turner said changes need to be made to how financial markets function and how consumers should be protected following the financial crisis.
Speaking at the FSA's Financial Capability conference dinner, Mr Turner asked if products were too complex and if it was necessary for the watchdog to intervene on pricing to protect investors.
He said that at the same time as protecting consumers they need to be educated to understand financial matters such as budgeting and obtaining the latest information about financial products, so that they can protect themselves.
The call comes after the Government proposed legislation to set up a national money guidance service to help consumers, funded by a levy on the industry.
The FSA has also proposed banning investment firms from paying commission to consultants who sell their products so that consumers can get unbiased financial advice.