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IFS: Education key to reducing adviser mis-selling exposure

Financial capability is key to ending the scandals that always result in regulators pointing the finger of blame at the industry and, often, the financial advice sector, according to Alison Pask.

In a video interview with Financial Adviser’s Simoney Kyriakou, Ms Pask, vice principal for financial capability at IFS University College, said one of the big issues the financial services industry has is people do not “wake up and say, ‘today is the day I am going to buy a pension’”.

She said: “The financial services industry does not have has a queue of people waiting to receive advice. If we have a more financially capable society then the role of the financial adviser is going to be greatly improved.

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“I know from years of being in the financial services industry that whenever there is a scandal it is always the industry that is at fault, according to the various regulators.

“I know from first hand experience, I have met people who have a mortgage who were really not in the position to understand what they had been sold or had the means to make those repayments.

“If we had a greater degree of financial capability within society then the financial adviser industry would be a much better place for all those involved.”

Click here to watch the video interview.