Regulation may protect consumers, but it should not absolve them of their individual responsibilities, Liz Field, chief executive of the Wealth Management Association, has warned.
Ms Field (pictured) said that regulation in areas such as pension flexibilities could benefit individuals, but she claimed they needed to assume responsibility.
She said: “It is worth understanding that while regulation might be in place to protect the consumer, it should not undermine the principle of ‘caveat emptor’.
“People need to take some personal responsibility.”
Ms Field also called for a drive to educate people about finance.
“How aware is the man in the street about such things as stocks and shares? People need to understand that this is an investment over the long term,” she said.
In 2013, FCA chief executive Martin Wheatley told a conference in London that caveat emptor could be a moral hazard.
He said: “Is it fair for businesses to rely on a defence of caveat emptor if they sell a product they know is not suitable for the customer?
“These are the kind of challenges we will be working on in future.”
Adviser view
John Stewart, director of Essex-based PMI Independent Financial Advisers, said: “People have to take some responsibility for their actions – you cannot keep blaming the advisers.”
