Retail Conduct Risk Outlook indicates that consumers are struggling with the effects of a slower economy, low interest rates and poor returns on investments.
And according to FSA many people are trying to negate the effects of slower economy, low interest rates and poor returns on investments by resorting to more saving, more shopping and paying off their debt.
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This in turn is leading to consumers buying and being sold unsuitable products, including products that are risky for them, products they do not understand or products that do not meet their individual circumstances.
The Outlook analyses the wider external factors in the economy, the pressures on different firms and the impact of this on different consumers.
It also helps in ensuring that the firms understand, reduce and avoid risks and that it is an essential part of helping the FSA targets its resources.
Martin Wheatley, FSA managing director remarked "Our analysis means we can focus our work on the most significant risks facing consumers. It also helps firms understand how to avoid the bear traps of designing products for maximum profit but little benefit to customers."
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By GlobalDataSome of the risks identified by the Outlook are well known and established, whereas others are new.
The risks will be used by the FSA in its work with firms over the next 12 to 18 months.
FSA said that the main objective of FSA’s conduct agenda for 2012 is early intervention to try and stop issues escalating into mass consumer detriment.
