Sir Callum McCarthy, chairman of the UK Financial Services Authority, has labeled UK pensions and savings providers as failures regarding their efforts to attract customers to their products, and challenged them to improve their performance.
Sir McCarthy said that the industry fails miserably to engender long-term relationships with customers and needed to revamp its attitude and strategy to attract more savers.
The FSA chief questioned whether providers worked in the best interest of customers and suggested that more needed to be done to offer savers better value.
My contention is that we have a system that serves neither the producer of the services nor the consumer of the services, Sir McCarthy told a gathering of industry executives.
The stinging criticism comes as the industry has been reeling from accusations of mis-selling and poor counseling regarding appropriate pensions and savings products.