Why? Well financial products tend to be important, such as life insurane, mortgages etc. So why are the banks allowed to sell "Non advised" unsuitable products and just wash their hands when the poor customer hits a problem. With something as important as life insurance the wrong product could ruin a family and cause untold misery. But if it was "non advised" and bought at the bank or super market or on line then it's just tough. Where as the brokers who can provide advise to look after their clients are being hounded out of business by the FSA.
If the FSA actually understood the market and clients then they would never have allowed "non advised" to come to pass, yet ever year millions of people take out the wrong cover/mortgage and are at great risk.
Why does this idea matter?
too protect 100,000's or even 1,000,000's who have taken out the wrong or unsuitable life insurance, mortgages and the like all to allow banks, super markets and others to make a quick profit without any thought for the potential damage they are doing.
You try explaining to someone that their "non advised" policy hasn't paid out after the death of their loved one because it wasn't suitable but they can't do anything about it because they didn't buy it on a "advised" basis which would have given them protection and if needs be redress through the Financial Services Compensation Scheme.
The FSA talks about Treating Customers Fairly (TCF) but all it's actions are against brokers who provide advice and lead more people to buy direct/on line on a "non advised" basis., where is the TCF in that