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					                               Consumer
                                Research



                               67
Financial Services Authority

Consumer awareness of
the FSA and financial
regulation


Fieldwork conducted by TNS




2008 Report
Financial Services Authority




Consumer awareness of the FSA and
financial regulation




Fieldwork conducted by TNS




2008 Report
Acknowledgments
We wish to thank TNS who carried out the field work on our behalf in 2008 and 2007, GfK
NOP who carried out the research in 2006 and 2005 and BMRB who carried out the fieldwork
in 2004 and 2003.



The research project was managed by Simon Sarkar at the FSA.
Tel: 020 7066 4268, e-mail: simon.sarkar@fsa.gov.uk

This report was authored by Tim Burrell at the FSA.
Tel: 020 7066 4322, e-mail: tim.burrell@fsa.gov.uk

Copies of the report can be downloaded from the publications section of the FSA website -
http://www.fsa.gov.uk/Pages/Library/research/Consumer/index.shtml
Contents

1.   Background                                                                       1

2.   Methodology                                                                      2

3.   Summary                                                                          3

4.   Awareness of regulation                                                          5
     4.1   Overall levels of awareness of financial regulation and the FSA            5
     4.2   Which groups are most and least aware that financial regulation exists?    6
     4.3   What people think are the main activities of the FSA/financial watchdog    9
     4.4   Awareness of various aspects of the regulatory regime                     10


5.   Confidence in financial regulation                                              12
     5.1   How confident are people that the FSA is effectively regulating the
           financial services industry?                                              16


6.   Non-zero failure                                                                18
     6.1   Do people believe firms are allowed to go bankrupt?                        18
     6.2   Can consumers lose money from a firm going bankrupt?                      21


7.   Product risk                                                                    22
     7.1   Consumer product holdings and stated attitude to risk                      22


8.   Treating customers fairly                                                       24
     8.1   Consumer confidence in financial firms treating customers fairly           24
     8.2   Consumers’ confidence in being treated fairly by the financial firms they
           deal with                                                                 26
     8.3   Consumer experience when dealing with financial firms                     26


9.   Financial crime                                                              302
     9.1   Likelihood of becoming a victim of financial crime                        32
     9.2   Responsibility for the prevention of financial crime                      34
     9.3   Actions taken to prevent financial fraud                                  356


10. Appendix A: 2008 Questionnaire                                                399
1.         Background

The FSA is keen to know about the extent of consumers’ knowledge of regulation and their
confidence in the financial system. The FSA has tracked its recognition levels over a number of
years and refined and extended the analysis over this time. Whilst it is not especially important that
consumers are aware in detail of all the different aspects of the FSA’s work, knowledge of the FSA’s
work in relation to consumer protection and consumer information may help consumers make more
informed decisions and increase their capability and confidence.


Many consumers will benefit from the work of the FSA indirectly through the actions of firms, and
will be unaware of the direct role of regulation. But in other cases, an awareness of some elements
of regulation, in its widest sense, are likely to help consumers in making informed decisions.
Conversely, if consumers have unrealistic expectations of what the regulatory regime can provide,
this may shape their behaviour inappropriately.


Analysis of the data has enabled us to monitor awareness levels amongst the holders of regulated
products as well as those who have limited interaction with financial services. The study provides
measures of confidence that consumers have in financial services and regulation, specifically the
perceived confidence that firms follow the regulatory regime and consumer confidence that they
will be dealt with in a fair manner by firms. In addition, the study provides information on
consumers’ attitudes and behaviour related to financial crime, financial capability and non-zero
failure.
2.        Methodology

The research presented in this paper is based primarily on results from an omnibus survey carried
out by TNS during February 2008. A representative sample of 1,981 adults were interviewed face to
face in their own home throughout Great Britain. The sample is based on 149 sampling points. A
limited amount of corrective weighting was applied in order to ensure that it is representative of
the British population in terms of known population data on age, sex, social class and region.


The questionnaire has evolved over a number of years and the content is broadly similar to the
previous surveys. The 2008 questionnaire included additional questions covering whether consumers
have changed financial products in the last 12 months and complaints procedures. Where
appropriate, the previous years’ results have been incorporated into the tables and charts within
this document for ease of comparison. The 2008 questionnaire is attached in the Appendix and
previous questionnaires may be found on our website within the library of publications 1 . A number
of the variables in the analysis are the result of fusing various questions together to reflect some of
the nuances and subtleties in consumers’ knowledge, or to aid in the interpretation of the results.
The analysis contained in this report was carried out by the FSA.




1
    The 2007 survey can be found at www.fsa.gov.uk/pubs/consumer-research/crpr62.pdf
    The 2006 survey can be found at www.fsa.gov.uk/pubs/consumer-research/crpr57.pdf
    The 2005 survey can be found at www.fsa.gov.uk/pubs/consumer-research/crpr39.pdf
    The 2004 survey can be found at www.fsa.gov.uk/pubs/consumer-research/crpr29.pdf
    The 2003 survey can be found at www.fsa.gov.uk/pubs/annual/ar02_03/consumer_awareness_survey03.pdf
3.       Summary

Just under a third of consumers are aware of the FSA
Consumers may hear about the FSA through a wide variety of sources, whether through the media,
campaign activity or regulatory material. Recent changes to the UK economy have led to increased
publicity of financial markets overall and the FSA. The level of awareness of the FSA has been
largely unchanged over the past five years. The 2008 figure (32%) shows a significant increase on
2007 (28%) but remains below the 2006 figure of 34%. The number of consumers who answered
spontaneously that they are aware of the FSA is at its highest level ever (18%).


Two-thirds are confident that firms follow FSA rules

Two-thirds (67%) of consumers who are aware of the FSA are confident that firms follow FSA rules.
Amongst those aware of FSA responsibilities, results show significant increases in consumer
confidence that all or most firms meet the required FSA standards for authorisation, prudential and
CoB suitability. Two-thirds (67%) believe that the FSA effectively regulates firms.


Significant fall in consumers not willing to take investment risks
Consumers appear less risk averse with the number of consumers not willing to take any risks with
investments falling 5 points since 2007 to 56%.


Significant drop in consumers' belief that all types of firms were allowed to go
bankrupt
The number of consumers who believed that all firms are allowed to go bankrupt has fallen from
37% in 2007 to 31% to 2008. There is an increase in numbers who believe that some firms are
allowed to go bankrupt.


Consumer experience suggests that firms treat customers more fairly

There is a significant increase in consumers who feel that, from their own experience, they are
treated fairly – 61% in 2008 compared with 57% in 2007.


Increase in number of consumers who believe they will not become a victim of
financial fraud
Nearly three-quarters of consumers (72%) thought that it was very or fairly unlikely that they would
be a victim of some kind of financial fraud in the next year, a 5% increase on the previous year. Just
under half of consumers (49%) believe that the individual has responsibility for preventing financial
fraud.
4.      Awareness of regulation

Awareness of the FSA and financial regulation may be more meaningful for many when it is
contextual, for example at a time when they are buying a product or have some financial query.
Recent changes to the UK economy have led to increased publicity of financial markets overall and
the FSA.


As financial markets change, knowing that there is some framework in place which consumers can
look into in more detail at the appropriate time, may be an important method of delivering
information about the extent of financial regulation. It can also lead consumers to access specific
information such as the comparative tables on the FSA website.


The FSA has many other potential touch points with the public, for example through consumer
alerts via the press, consumer information published on fact sheets, and the web and consumer
campaigns such as “moneymadeclear”. Consumers may also see the FSA mentioned within financial
promotions or documentation they receive when purchasing a financial product.


4.1 Overall levels of awareness of financial regulation and the FSA
Research shows that consumers have various levels of knowledge about financial regulation. This
may reflect varying levels of knowledge about financial services in general and more specifically
about the nature of regulation in the sector itself. Consumers with an interest in and need for a
wide range of financial products are likely to have more exposure to information about regulation
through financial promotions and documents related to the purchase of specific financial products.


There are various levels at which we can measure knowledge of financial regulation. Our research
allows us to measure the public’s knowledge of financial services regulation in general and also
knowledge of the FSA as a regulator. Overall, just over half (53%) of people said at the very least
they assumed that some form of financial regulation was being carried out, and just under a third
(32%) of all people were aware that the FSA regulates the industry.


Although the level of awareness of the FSA has remained relatively constant over the past five
years, the 2008 figure (32%) shows a significant increase on 2007 (28%). However, this is still less
than the awareness level shown in 2006 (34%). The results show the highest level of spontaneous
awareness (18%) since the survey began. The increase in the FSA’s awareness level since 2007 is not
surprising. As public awareness levels of organisations often reflect the public’s interest in the type
of organisation or the wider environment in which the organisation operates.
Levels of awareness broken down further:
•    In addition to the 18% who could remember the organisation without prompting, a further 14%
     could remember the organisation when prompted (15% in 2007);
•    7% were aware of a financial regulator (including some of the legacy organisations) but not the
     FSA (8% in 2007);
•    14% were not aware of any specific regulator but assumed that there was an organisation
     looking after financial regulation (17% in 2007); and
•    47% were unaware that there was any type of financial regulation (46% in 2007).
Figure 1



     Awareness of the FSA – overall
                                                                                                       RESTRICTED




     Awareness of the FSA as a financial regulator amongst people living in Great
     Britain aged 16 and over

             100%

               80%       37%            37%                         41%
                                                         47%                     46%          47%

               60%
                          18%          19%                          16%
                                                         14%                     17%          14%
               40%       14%            14%                         10%
                                                         9%                      8%           7%
                         18%            16%              15%        19%          15%          14%
               20%
                                   30%           30%            30%         34%          28%         32%
                          12%           14%              15%        15%          13%          18%     2003 n=1969
                0%                                                                                    2004 n=1993
                          2003          2004             2005       2006         2007         2008    2005 n=1924
                   Aware of FSA without prompting               Aware of FSA with prompting           2006 n=1940
                   Aware of other financial regulators          Assume a regulator exists
                   No knowledge of a regulator                                                        2007 n=1943
                                                                                                      2008 n=1981

It might be thought that those who were only able to mention the FSA after prompting might be
giving a ‘false-positive answer’. However, when asked to give their spontaneous views on what the
main activities that the FSA carries out are, there was little difference with the group who were
able to mention the FSA unprompted. This suggests that this group were indeed aware of the FSA.


4.2 Which groups are most and least aware that financial regulation
    exists?
Awareness of regulation may increase consumer's confidence in choosing and using financial
services. Those unaware of regulation may have less confidence in financial services in general and
be less confident in using financial products to meet their needs. Consumers may also have less
awareness of the protection available to them or may be unlikely to seek redress or make
complaints through the appropriate channels. Lack of knowledge about a regulatory framework was
more likely to be the case amongst the younger and older age groups, with over two-thirds (70%) of
16-24 year olds and nearly three fifths (59%) of those aged 65 and over being unaware that there is
any financial regulation - those aged between 35 and 64 were the most aware. A plausible
explanation for this is that awareness of regulation is linked to experience of operating in the
financial services market, and those aged between 35 and 64 are more likely to own and be the
most active in buying and thinking about financial products. Comparisons of the differences amongst
age groups since the last year of research show no significant changes.
Figure 2

Error!

     Awareness of regulation by age
                                                                                                                                   RESTRICTED


               4 YEAR COMPARISON
     Awareness of financial regulation by age (n=1982)
  100%

  90%
                                                              31%                   31%         32%         31%
  80%                                  40%              38%         38% 36% 36%           36%         36%
                                                                                                                  40% 40%
                                 47%         45% 47%
                                                                                                                                  51%
  70%          60% 63%                                                                                                      57%         57% 59%
         67%               70%                                                      11%         13%
  60%                                                         17%                                           15%
                                                                          15% 12%                     12%
                                                                    17%                   16%
                                                        17%                         11%                           13% 14%
  50%                                  22%                                                      9%
                                 14%                          13%              9%                     10% 12%
                                             23% 15%                      6%
                                                                                          8%                      8% 7%
  40%                                                   11%         9%                                                            17%
                                                   4%                                                                       16%         16%
               14%               11% 10%                                                                                                      17%
  30%                                                                                                                             7%
                     16%                     10%
         15%               12%                                                47%     46% 43%                               6%          6%
               8%                                                                                                                             5%
  20%                                                         40% 36% 43% 43%     40%         41% 39% 39%
                     8%                            35% 34%
         6%                8% 28% 29%
  10%          18%                           22%                                                                            22% 25% 21% 20%
         11%         14% 10%
   0%
          16- 16- 16- 16- 25- 25- 25- 25- 35- 35- 35- 35- 45- 45- 45- 45- 55- 55- 55- 55- 65+ 65+ 65+ 65+
          24   24   24   24   34   34   34   34   44   44   44   44   54   54   54   54   64   64   64   64 2005 2006 2007 2008
         2005 2006 2007 2008 2005 2006 2007 2008 2005 2006 2007 2008 2005 2006 2007 2008 2005 2006 2007 2008
                    No knowledge
                    Assume there is a regulator
                    Named or are aware of other financial regulatory bodies but not the FSA
                    Prompted and unprompted FSA recognition
 Table 1: Awareness of regulation by type of product held
                                                Name or
                                    FSA
                                                aware of      Assume
                                 prompted                                    No
                                                  other      there is a                   Base
                                    and                                   knowledge
                                                financial    regulator
                                unprompted
                                               regulators
 Unit trusts, equity ISAs
                            %     55 (53)        6 (10)       17 (18)      22 (19)      268 (258)
 or PEPs
 Personal pension/FSAVC     %     56 (53)         7 (6)       13 (15)      24 (26)      407 (380)
 Direct share ownership     %     62 (61)         6 (8)       13 (14)      19 (17)      234 (239)
 Bonds or gilts             %     48 (54)         9 (9)       21 (17)      23 (20)       71 (93)
 Mortgage (endowment)       %     60 (49)         9 (7)       11 (16)      20 (28)      137 (232)
 Mortgage (repayment)       %     57 (46)        6 (10)       17 (18)      20 (26)      391 (405)
 Mortgage (interest only)   %     64 (52)        5 (12)       11 (9)       21 (27)      111 (91)
 Own a low-risk financial
 product (e.g. current or
 savings accounts) but      %     22 (18)         6 (9)       16 (18)      57 (55)     1083 (1088)
 none of the other
 categories
 Own no financial
                            %     14 (15)         6 (5)       9 (10)       71 (70)      207 (187)
 product

* Respondents can be in more than one of these categories. 2007 figures shown in brackets.

Table 1 shows that knowledge of financial regulation varies depending on whether people own
financial products and the types of products they own. The most informed group has changed from
the previous year. The most informed are those with interest only mortgages (64%), not those who
were direct holders of shares, which were the most aware in 2007. There were large percentage
increases in awareness for all types of mortgage but the only significant change is in the case of
repayment mortgages (46% in 2007 to 57% in 2008).


The figures show there is an increased level of awareness across all groups except those with bonds
or gilts or who own no financial product. The increased awareness could be due to the fact that it
reflects the people who are most exposed to Conduct-of-Business rules and point-of-sale literature
that mentions the FSA. It may also be indicative of a greater financial sophistication, engagement
and interest in the subject matter.


It is also useful to examine further the group who said they were completely unaware of how the
activities of people and companies that sell financial products are regulated. Almost three-quarters
(71%) of people with no financial products have no knowledge, whilst less than one quarter (22%)
people who said they had an equity ISA, unit trust or PEP also said they were unaware of any
financial regulation.
4.3 What people think are the main activities of the FSA/financial
    watchdog
People who said they knew about the FSA were most likely to think spontaneously that its main
activities were about ensuring that financial firms treat their customers fairly (44%). This is a new
category coded in 2008 and takes over from the previous most popular response which was that the
FSA is most concerned with selling practices and preventing mis-selling. This figure is down from
42% in 2007 to 28% in 2008. Much of this decrease can be attributed to respondents being coded into
the answer of 'treating customers fairly'.


Other unprompted responses included ensuring only appropriate firms and people can work in
financial services (20%), providing consumer information (10%), prosecuting firms or individuals for
misdeeds (12%), and ensuring firms have appropriate monetary reserves (8%). Knowledge about the
different aspects of regulation has not changed greatly since the last survey but all categories show
a slight decrease. It can be assumed that this decrease is due to the introduction of an option of
'treating customers fairly'. Other FSA duties mentioned by consumers include preventing fraud,
checking interest rates and dealing with complaints.
    Table 2: Consumers’ unprompted knowledge of the main areas of financial regulation/FSA
             activities by their awareness of financial regulation
                               FSA prompted      Name or aware of
                                                                       Assume there
                                    and           other financial                             Total
                                                                       is a regulator
                                unprompted          regulators
                                     %                    %                  %                  %
    Compensation for
                                    8 (7)               5 (5)              3 (9)               6 (7)
    consumers
    Ensuring only
    appropriate people or
                                   20 (24)             13 (13)            13 (12)             17 (18)
    firms can work in
    financial services
    Selling practices or
                                   28 (42)             13 (27)            14 (24)             22 (34)
    preventing mis-selling
    Consumer education              3 (8)               3 (5)              2 (8)               3 (7)
    Consumer information           10 (13)              8 (9)              6 (13)             9 (13)
    Ensuring firms have
    appropriate monetary           8 (11)               4 (7)              6 (11)             7 (10)
    reserves
    Prosecuting firms or
                                   12 (14)             9 (12)              7 (9)              10 (12)
    individuals for misdeeds
    Ensuring that financial
    firms treat their                44                  30                  26                 37
    customers fairly**
    Other                          18 (11)             16 (7)              16 (7)             17 (9)
    Base                         633 (555)           126 (161)           285 (327)       1044 (1041)

* Respondents can be in more than one of these categories. 2007 figures shown in brackets.
** 'Ensuring that financial firms treat their customers fairly' is a new category for 2008.


4.4 Awareness of various aspects of the regulatory regime
Spontaneous exploration of what consumers think a watchdog might do is a useful gauge of what is
uppermost in people’s minds; however, we also probed people who said they were aware of the FSA
in more detail about various aspects of regulation. Four main categories were asked about and have
been summarised under the following sub-headings (respondents were read out the explanation
outlined in brackets below):
•      Authorisation (the FSA checks firms and individuals to make sure they meet certain standards
       to work in financial services, including whether individuals are qualified and companies have
       enough money to operate);
•      Prudential protection (the FSA makes sure that banks, building societies, insurance companies
       and other financial institutions hold enough funds to pay out to their customers in normal
       circumstances);
•      Enforcement (the FSA fines and sanctions firms for breaking its rules); and
•      Conduct-of-Business suitability rules (when people buy investment products, the FSA requires
       that salespeople and financial advisers ensure that the product is suitable for the consumer).


Respondents were asked to differentiate between whether they were sure the FSA carried out the
activity and what they thought or assumed might be the case. In a change to the previous year,
enforcement is the most known about FSA activity (81%, up 2 points from 2007). Ensuring that firms
met certain standards (authorisation) and Conduct-of-Business suitability were equally known about
(both 80%) followed by the FSA’s role in prudential protection, 72%, up 2 points from 2007.


About one in ten people who said they were aware of the FSA had little knowledge about its
authorisation, enforcement activities and suitability requirements. About one in six (17%) were
unaware of the prudential protection function.



    Table 3: Consumers’ level of knowledge about the FSA's activities amongst those consumers
             who had heard of the FSA (prompted and unprompted)


                               Authorisation         Prudential        Enforcement     CoB suitability

                                      %                   %                 %                %
    I definitely knew the
                                   51 (54)             29 (33)           47 (46)          46 (46)
    FSA did this

    I thought they must do
                                   29 (27)             43 (37)           34 (33)          34 (34)
    this

    I thought some
    organisation must be
    doing something like            9 (11)             11 (12)             7 (9)           9 (10)
    this but did not know
    who

    I didn't know this was
    done by anyone/I hadn't         11 (8)             17 (19)           13 (13)          10 (11)
    thought about it before


    Base                          633 (554)          633 (554)          633 (554)        633 (554)

* 2007 figures shown in brackets.
5.        Confidence in financial regulation

There are many aspects of consumer confidence in the financial services industry, for example
views on the economy, confidence in the products and services provided by firms, and specific
examples of regulatory failure. Consumers’ views are likely to be driven not only by what is
happening in the industry as a whole (which they are often made aware of through the media) but
also through their own, and friends’ and relatives’, experiences. Many of these factors will be inter-
related, but for this particular piece of research we concentrated on consumers’ overall confidence
in the regulatory regime.


To measure whether consumers are confident in the amount of regulation afforded them by the FSA
the survey asked all respondents how confident they were that firms followed FSA standards for
authorisation, CoB suitability and prudential rules. This is a change from previous studies which only
asked respondents who were aware of the activity how confident they were that it is carried out.
Results are broken down into those who are aware of the product and those who are not (Tables 4
and 5).
Figure 3 shows that only a small proportion of respondents aware of the FSA thought all firms
followed FSA rules (6%). Over two-thirds (67%) of this knowledgeable group are very or fairly
confident that firms complied with FSA rules (the same as 2007)

Figure 3


     Do consumers think that firms follow
     FSA rules?                                                                         RESTRICTED




     Confidence that UK financial firms follow FSA rules (amongst consumers aware
     of the FSA, 2003 n=599, 2004 n=524, 2005 n=577, 2006 n=626, 2007 n=551; 2008 n=626)


       100%          3%           3%            3%          2%           2%          4%
                     10%         12%           10%          8%           9%          9%
           80%                                             18%          22%         20%
                    21%                        23%
                                 26%
           60%

           40%                                             63%
                    62%          52%            57%                     62%         61%

           20%

                     4%           6%            8%          9%           5%          6%
           0%
                    2003         2004          2005        2006         2007        2008
                    Very confident                           Fairly confident
                    Neither confident nor unconfident        Fairly unconfident
                    Very unconfident



There are significant shifts in confidence shown by consumers who are aware of FSA responsibilities.
Table 4 shows significant increases in consumer confidence that all or most firms meet the required
FSA standards for authorisation, prudential and CoB suitability.

Amongst respondents aware of authorisation only 5% are confident that all firms reach the required
standard, a significant drop from 18% in 2007. The number of consumers who believe that most
firms reach these standards has increased to 58% in 2008 from 32% in 2007. There is a significant
drop in those who believe that only some firms reach FSA authorisation standards - 27% in 2008,
down from 49% in 2007. Consumers from the groups who believe that all or some firms meet
required authorisation standards now believe that most firms meet the required standards.

In the prudential category there has been an improvement in confidence. A significant change is
shown from the consumers who believe that some firms meet FSA standards (18% in 2008 down from
54% in 2007) to the group who believe that most firms reach FSA standards (59% in 2008, up from
22%). The number or respondents who think that either all firms reach FSA standards or few/no
firms reach FSA standards has remained the same.
Only 6% of consumers aware of the activity think that all firms reach CoB suitability standards in
2008. This is a significant change from 13% in 2007. The figures show a significant drop from 49% in
2007 to 34% in 2008 of people who think that some firms reach FSA standards in CoB suitability. Like
authorisation these drops are reflected in a rise in consumers who believe most firms reach required
standards – 46%, up from 30%.



 Table 4: Level of confidence that consumers have of firms meeting the required standards -
          amongst consumers who are aware of the FSA and know about the activity


                                Authorisation             Prudential             CoB suitability

                                       %                       %                        %
 All firms reach these
                                     5 (18)                 12 (11)                   6 (13)
 standards

 Most firms reach these
                                     58 (32)                61 (22)                  51 (30)
 standards

 Some firms reach these
                                     27 (49)                19 (54)                  31 (49)
 standards

 Few/no firms reach
                                     10 (9)                  9 (13)                   12 (8)
 these standards

 Base                               485 (484)              442 (439)                495 (484)

* 2007 figures shown in brackets.

Consumers aware of the activity may be more likely to have financial products and personal
interactions with the industry and financial product holdings than the less knowledgeable group.
Table 5 shows the level of confidence of consumers not aware of a particular activity have that the
activity is carried out. The results show that few people thought that all firms reach the required
standards for authorisation (6%), prudential (7%) and CoB suitability (4%). Most consumers believe that
most or some firms reach the required standard. However, one quarter of those unaware of the
activity thought that no or few firms meet authorisation and prudential standards (25% and 24%
respectively). Nearly a third of people thought that no or few firms meet the required standards for
CoB suitability (30%).

 Table 5: Level of confidence that consumers (who are aware of the FSA) have of firms
         meeting the required standards - amongst consumers who are unaware of the
         activity

                                Authorisation             Prudential             CoB suitability

                                       %                       %                        %
 All firms reach these
                                       6                       7                        4
 standards

 Most firms reach these
                                      38                      41                       30
 standards

 Some firms reach these
                                      31                      29                       35
 standards

 Few/no firms reach
                                      25                      24                       30
 these standards

 Base                                 909                     992                      965

* No figures available for previous years
5.1 How confident are people that the FSA is effectively regulating
    the financial services industry?
There is a further drop amongst people who believe that the FSA is effectively regulating firms (67%
in 2008 compared with 72% in 2007). Despite this drop not being a significant fall from 2007, the
results do represent a significant fall from the 77% figure shown in 2006. Around one in five (19%, no
change in 2007) had no view and the remainder (15%, up from 9% in 2007) were not confident about
the FSA’s role – a significant shift in confidence.
Figure 4



      Is the FSA effectively regulating firms?
                                                                                                 RESTRICTED




           Confidence that the FSA is effectively regulating the financial
           services industry (amongst consumers aware of the FSA, 2003 n=599, 2004 n=524,
           2005 n=577, 2006 n=630, 2007 n=547, 2008 n=633)
                                                                                               very/fairly
                                                                                              unconfident
               100%        3%          3%            3%           1%         2%
                                                                  8%        7%          5%
                           7%       10%
                                      11%            8%
                                                   14%         11%        9%          9%
                                                                                       10%     15%
                                                                 14%        19%
                80%        23%                        21%                              19%
                                        25%
                60%
                                                                                               very/fairly
                                                                64%                            confident
                40%        58%                         58%                  62%        58%
                                        54%
                                    66%            61%         68%       77%          72%      67%
                20%
                           8%            7%           10%       13%         10%         9%
                  0%
                           2003         2004          2005      2006        2007       2008
                           Very confident                        Fairly confident
                           Neither confident nor unconfident     Fairly unconfident
                           Very unconfident



Although figure 4 shows a fall in the number of consumers who are confident that the FSA is
effectively regulating the financial services market, table 4 shows significant increases in the belief
that all or most firms meet the required FSA standards for authorisation, prudential and CoB
suitability.
It is important to track confidence levels amongst people who were not aware of the FSA
specifically, but had awareness that some form of regulation within the financial services industry
takes place. People not aware of the FSA but who were aware or assumed that financial regulation
is carried out were told that firms have to follow certain rules which include that staff are
qualified, that they have enough funds to pay out to consumers, and that products sold to
consumers are suitable for their needs. They were then asked how confident they were that these
activities actually took place (figure 5). Two-thirds (66%) of this group were confident that the
regulatory activities described were being carried out (up 1 point from 2007). The results show a
significant increase in those who are unconfident (16%), up from 11% in 2007 but the same as the
2006 figure.
Figure 5



     Confidence that firms follow rules
                                                                                                RESTRICTED




     Confidence that UK financial firms follow rules so that they have
     qualified staff, sufficient funds to pay out to customers and that
     products sold to consumers are suitable for their needs (amongst consumers
     aware of financial regulators but not the FSA, 2003 n=627, 2004 n=656, 2005 n=412, 2006 n=508, 2007
     n=551; 2008 n=626)

               100%        3%           2%            5%       6%           2%         4%
                           15%                                              9%        12%
                                       19%           14%      10%
               80%                                                         22%
                                                              18%                     18%
                          22%          23%           21%
               60%

               40%                                                         62%        59%
                          56%                                 62%
                                       52%            56%
               20%

                 0%        4%           5%            4%       5%           5%         7%
                          2003         2004          2005     2006         2007       2008
                          Very confident                        Fairly confident
                          Neither confident nor unconfident     Fairly unconfident
                          Very unconfident
6.      Non-zero failure
The failure of regulated firms has the potential to impact on the public confidence in financial
markets and services. The FSA has an interest in measuring the public’s awareness of a non-zero
failure regime, which picks up elements of confidence in firms as well as an awareness of the
potential risk of firm failure.


6.1 Do people believe firms are allowed to go bankrupt?
To test public awareness of a non-zero-failure regime we asked respondents whether firms that are
regulated are ever allowed to go bankrupt or go out of business. Under a third of people (31%, a
significant drop from 37% in 2007) thought that all types of firms (including banks, building
societies, insurance providers and Independent Financial Advisers) were allowed to go bankrupt.
Over a quarter (28%) thought that only some firms were allowed to go bankrupt, up 6 points from
2007. The remainder thought that no firms were allowed to go bankrupt (14%) or they did not know
(27%, down five points from 2007).

Figure 6



      Non-zero failure
                                                                                             RESTRICTED




     Do people believe firms that are regulated are allowed to go bankrupt? (2003
     n=1969, 2004 n=1993, 2005 n=1924, 2006 n=1940, 2007 n=1943, 2008 n=1981)


              100%
                           15%       15%
                                                            33%          28%       27%
                80%                  15%        39%
                          20%
                                                                         13%       14%
                60%                                         11%
                                     37%        15%
                          33%                               21%          22%       28%
                40%                              20%
                20%       33%        33%                    35%          37%
                                                27%                                31%
                 0%
                          2003       2004       2005        2006         2007      2008

                       All firms      Only some firms         No firms          Don't know




Those aware of regulation were more likely to agree that all types of firms were allowed to go
bankrupt (46%) compared with those with no knowledge of regulation (21%), (table 6). Those who
had no knowledge about regulation were also the most likely to not know whether or not regulated
firms were allowed to go bankrupt (40%).
Across all levels of FSA awareness there is an increase in the proportion of respondents who believe
that only some firms are allowed to go bankrupt, and a decrease in the number who think that all
firms are allowed to go bankrupt. For those not aware of the FSA but aware of other financial
regulators there is a significant fall from 48% in 2007 to 30% in 2008 who believe all firms can go
bankrupt. Among the group who assume there is a regulator there is a significant decrease of 6
points to 31% in those consumers who believe all firms are allowed to go bankrupt. Among
consumers who are unaware of a regulator there is a significant downward shift in those who
believe all firms can go bankrupt of 6 points to 21% in 2008.



Table 6: Consumers’ views on whether or not they believe that regulated firms are ever
         allowed to go bankrupt by awareness of financial regulation

                     FSA prompted       Name or aware        Assume
                                                                             No
                          and          of other financial   there is a                   Total
                                                                          knowledge
                      unprompted           regulators       regulator
                           %                   %                  %          %            %
All firms allowed
                        46 (49)             30 (48)             31 (37)    21 (27)      31 (37)
to go bankrupt
Only some firms
allowed to go           32 (30)             33 (26)             36 (23)    22 (16)      28 (22)
bankrupt
No firms allowed
                         10 (7)             13 (11)             14 (16)    17 (17)      14 (13)
to go bankrupt
Don’t know               13 (14)            24 (15)             19 (24)    40 (41)      27 (28)
Base                    633 (555)          126 (161)        286 (327)     937 (902)   1981 (1944)

* 2007 figures shown in brackets.

When people's opinions of whether all firms are allowed to go bankrupt is looked at by what types of
products people owned, there were fairly similar views amongst owners of most types of product,
except those who only owned a low-risk product and those who owned no products. For example,
only 28% of people who owned a low risk financial product thought all firms could go bankrupt
compared with 47% who had a unit trust, equity ISA, PEP, personal pension or direct share
ownership.
Table 7: Consumers’ views on whether they believe that regulated firms are ever allowed to
         go bankrupt by types of products owned
                                                        Only some         No       Don’t
                                         All firms                                             Base
                                                          firms         firms      know
Unit trusts, equity ISAs or PEPs     %   47 (48)         28 (28)        12 (8)     14 (16)   267 (258)
Personal pension or FSAVC            %   41 (43)         32 (25)       11 (10)     16 (19)   407 (379)
Direct share ownership               %   48 (53)         27 (22)        11 (8)     14 (17)   234 (238)
Bonds or gilts                       %   32 (52)         31 (26)        13 (5)     24 (16)    71 (92)
Own a low-risk financial
product (e.g. current or
                                     %   28 (36)         23 (20)       14 (14)     35 (31)   653 (1089)
savings accounts) but none of
the other categories
Own no financial product             %   17 (16)         20 (19)       19 (21)     44 (45)   208 (188)

* Respondents can be in more than one of these categories. 2007 figures shown in brackets.


Table 8: Why do consumers who answered only some or no firms can go bankrupt think firms
       are not allowed to go bankrupt?
                     FSA prompted        Name or aware of           Assume
                                                                                    No
                          and             other financial          there is a                  Total
                                                                                 knowledge
                      unprompted            regulators             regulator
                            %                      %                   %             %           %
Government/
regulator will
                          23 (13)             18 (12)               24 (11)       20 (13)     22 (13)
always bail them
out
Too many
consumers would           20 (19)              5 (22)               21 (22)       11 (15)     15 (18)
be affected
People would
lose confidence
                          21(10)                7 (5)               16 (7)         7 (3)       13 (6)
in the financial
system
Some firms are
too important to
                          18(15)              28 (18)               8 (10)         8 (3)      12 (10)
be allowed to go
bankrupt

Government
would never
                          13 (6)               12 (8)               11 (4)         6 (3)       9 (5)
allow consumers
to lose money

Base                     262 (206)            58 (59)              142 (126)     366 (294)   828 (685)

* Respondents can be in more than one of these categories. 2007 figures shown in brackets.
** Figures different to equivalent 2007 table. 2007 reported awareness of the FSA by response
category. E.g. of all those who answered 'government/regulator will always bail them out ', x %
were aware of the FSA. The 2008 report shows the responses given by awareness of the FSA. E.g. Of
the 262 people aware of the FSA, 23% responded 'government/regulator will always bail them out'.

Amongst consumers who do not believe that all or some firms are allowed to go bankrupt, the main
reason given for why people believe that firms are not allowed to go bankrupt is that the
government will always bail them out (22%) (Table 8). 15% think that too many customers will be
affected and 13% think that people will lose confidence in the financial system. People were
allowed to give more than one answer and those aware of the FSA gave more reasons than those
who are unaware of the FSA, giving an indication of their financial sophistication.


6.2 Can consumers lose money from a firm going bankrupt?
Over nine tenths (93%) of all consumers who believe that all or some firms are allowed to go
bankrupt believe they can lose money as a result of a firm going bankrupt. This is a slight decrease
on the 2007 figure of 96%.


Table 9: Whether consumers who think that some or all firms can go bankrupt believe they
       can lose money because a firm has gone bankrupt?
                    FSA prompted      Name or aware of      Assume
                                                                           No
                         and           other financial     there is a                    Total
                                                                        knowledge
                     unprompted          regulators        regulator
                             %                %                %             %            %

Yes                     94 (98)            88 (95)          93 (94)       91 (94)       93 (96)

No                       5 (2)              9 (3)            4 (4)         7 (4)         6 (3)

Don't know               1 (4)              3 (3)            3 (3)         2 (2)         2 (2)

Base                   492 (440)           80 (120)        191 (197)    410 (388)     1173 (1145)
7.      Product risk

Without a good understanding of the risk associated with products, consumers may purchase ones
that are unsuitable for their financial needs and goals.


People who were able to name the FSA unprompted were the least risk averse - 41% said they were
not willing to take any risk with their investments. Table 10 shows a significant decrease in those
who are risk averse – from 61% in 2007 to 56% in 2008. This decrease in unwillingness to take risks is
also significant in groups of consumers who assume there is a regulator (54% in 2008 compared with
66% in 2007) and who have no knowledge of the FSA (61% in 2008 compared with 67% in 2007).

 Table 10: Consumers not willing to take any risk with their investments by awareness of
          financial regulation

                                              Name or aware        Assume
                    FSA           FSA                                             No
                                             of other financial   there is a                   All
                unprompted     prompted                                        knowledge
                                                 regulators       regulator

 Not willing
 to take any
                 41% (44%)     58% (55%)         52% (56%)        54% (66%)    61% (67%)   56% (61%)
 risk with
 investments

 Base            363 (256)      269 (298)        125 (160)        286 (327)    938 (902)   1981 (1943)

* 2007 figures shown in brackets.



7.1 Consumer product holdings and stated attitude to risk
The setting in which consumers are interviewed is disassociated from consumers thinking about
products fulfilling certain needs. For some products, such as personal pensions, there may be little
choice for consumers to balance their risk profile against their desire and need to have a pension for
the future. Also, some of the people who have direct shares will have obtained them through
demutualisation or did not purchase the product themselves (for example inheritances or company
share schemes). For other areas, such as unit trusts, equity ISAs or PEPs, there may be a range of
explanations – consumers were not aware of the riskiness of the product they were buying, they
mis-bought the product, their risk profile had changed, or the salespeople did not match the
product to the customers’ risk profile. Table 11 shows little change in the risk profile of consumers
by products owned.
Table 11: Risk profile of consumers by the products they own

                                             Prepared to have     Prepared
                               Not willing
                                              some savings or      to take
                               to take any
                                               investments in      risks to    Don’t
                                risks with                                                    Base
                                             products that are       gain      know
                                savings or
                                              higher risk than      higher
                               investment
                                             savings accounts      returns
Unit trusts, equity ISAs
                           %     32 (33)          63 (57)           6 (8)      0 (2)    267 (257)
or PEPs
Personal pension or
                           %     46 (50)          49 (43)           4 (4)      2 (3)    407 (380)
FSAVC
Direct share ownership     %     36 (34)          58 (54)           6 (8)      0 (3)    234 (239)
Bonds or gilts             %     45 (37)          54 (56)           1 (5)      0 (2)         71 (93)
Own a low-risk financial
product (e.g. current or
savings accounts) but      %     65 (69)          20 (19)           5 (5)     10 (7)    655 (1088)
none of the other
categories
Own no financial
                           %     50 (55)           9 (14)           5 (4)     36 (27)    208 (188)
product

* Respondents can be in more than one of these categories. 2007 figures shown in brackets.
8.      Treating customers fairly

The principle of treating customers fairly (TCF) has existed since the implementation of the
Financial Services and Markets Act 2000 (FSMA) in 2001. Principle No. 6 says: “A firm must pay due
regard to the interests of its customers and treat them fairly”. The questions in this survey are not
intended to be a definitive measure of consumer's perceptions of fairness, but they are useful in
tracking general consumers’ confidence in being treated fairly by the firms they deal with.


8.1 Consumer confidence in financial firms treating customers fairly
Consumers’ perceptions of TCF may vary according to whether they are reflecting on financial firms
in general, perhaps through issues they have read about in the media or the experiences of friends
or family, or whether they are commenting on their own personal experience of the financial firms
they actually deal with. The survey asked respondents to comment on general perceptions
separately from their own experiences.


Over half of consumers (56%) were either very or fairly confident that financial firms treat their
customers fairly, an increase of 2 points from 2007 (Figure 7). This increase follows a decline of
nine points from 2006 to 2007. Around one in six were either fairly or very unconfident (15%), a
slight decrease from 2007 (17%).


Figure 7



     Treating customers fairly - general
                                                                                                  RESTRICTED




     In general, how confident are you that financial firms treat their customers
     fairly? (% respondents, 2006 n=1940, 2007 n=1943, 2008 n=1981)
        60%                 56%

                                  50%
        50%                    47%


        40%
                     confident                               unconfident
        30%
                 56% (54%)                   24%
                                                22%      15% (17%)
        20%                               16%
                                                            12%
                                                         10% 11%
        10%     7% 7% 6%                                                             6% 5% 7%
                                                                        5% 5% 4%


           0%
                  Very         Fairly       Neither         Fairly        Very       Don't know
                confident    confident   confident nor   unconfident   unconfident
                                          unconfident

                                           2006       2007    2008
Those who displayed some knowledge about the FSA were only slightly more likely to be confident
about financial firms treating their customers fairly than those without any awareness of regulation
(table 12). Overall there was a slight increase in the number of consumers who are very or fairly
confident that firms treat customers fairly compared with 2007.


Table 12: Consumer perception of TCF by awareness of financial regulation

                     FSA prompted       Name or aware of      Assume
                                                                               No
                          and            other financial     there is a                       Total
                                                                            knowledge
                      unprompted           regulators        regulator
                           %                     %               %               %              %
Very/fairly
                        61 (59)                54 (54)        60 (55)         54 (50)         56 (54)
confident
Neither confident
                        22 (23)                22 (17)        20 (22)         23 (27)         22 (24)
nor unconfident
Very/fairly
                        16 (17)                20 (28)        16 (20)         13 (15)         15 (17)
unconfident
Don’t know               1 (2)                  4 (1)           3 (7)         12 (9)           7 (5)
Base                   633 (555)              126 (161)      285 (327)       937 (902)    1981 (1943)

* 2007 figures shown in brackets.

Consumers across different product categories displayed similar levels of confidence in financial
firms to 2007. Those with no financial products had less confidence in financial firms than those
who used financial firms. The only significant change from 2007 is amongst those who own no
financial product where confidence has declined from 38% to 29%.


Table 13: Consumer perception of TCF by the products they own
                                                                            Own a low-risk
                        Unit
                                   Personal                               financial product
                      trusts,                    Direct                                          Own no
                                   pension                  Bonds or       (e.g. current or
                      equity                     share                                          financial
                                      or                      gilts       savings accounts)
                      ISAs or                  ownership                                         product
                                    FSAVC                                  but none of the
                       PEPs
                                                                           other categories

Confident        %   66 (66)        64 (60)      64 (59)    58 (70)            56 (57)           29 (38)

Neither
confident nor    %   21 (19)        20 (19)      21 (24)    31 (13)            23 (25)           24 (41)
unconfident
Unconfident      %   14 (12)        14 (15)      14 (13)     20 (8)            14 (12)           21 (13)
Don’t know       %     2 (3)         2 (6)        1 (5)      1 (10)             8 (5)            27 (8)


                                     407
Base                 267 (253)                  236 (236)   71 (93)          655 (1051)        208 (137)
                                    (378)


* Respondents can be in more than one of these categories. 2007 figures shown in brackets.
The majority of consumers (73%) felt that firms had become no better or worse at treating their
customers fairly in the last 12 months (figure 8). This is a significant increase of 13 points since
2007. This increase is reflected in the number of respondents who felt the situation had worsened,
which fell significantly from 15% in 2007 to 9% in 2008 and the number who felt the situation had
improved, which also fell significantly from 19% in 2007 to 9% in 2008.


Figure 8



     Treating customers fairly – general
                                                                                        RESTRICTED




     And thinking about the last 12 months, in general would you say that
     financial firms have become better or worse at treating customers
     fairly? % respondents, 2006 n=1940, 2007 n=1943; 2008 n=1981)
    80%
                                              73%

    70%
                                       60%
    60%                             55%

    50%

    40%

    30%
                                                         19%19%
    20%          15%                                                          15%15%
              11%
                           9%                                          9%                9%
    10%

     0%
                   Worse              No Change               Better            Don' know

                                           2006     2007     2008




8.2 Consumers’ confidence in being treated fairly by the financial
    firms they deal with
In addition to including questions about the industry in general, the survey also asked how confident
consumers were that the firms they dealt with would treat them fairly as consumer views of an
industry as a whole may differ from that of their own experience.


Figure 9 shows similar levels of confidence in peoples own experience to the level of confidence in
the industry in general – three out of five consumers (61%) were fairly or very confident that they
would be treated fairly, a 4 point increase from 2007, whilst around one in six (12%) were fairly or
very unconfident. A 4% drop from 2007.
Figure 9


       Treating customers fairly - own
       experience                                                                                            RESTRICTED




       In general, how confident are you that financial firms will treat you fairly? (%
       respondents, 2006 n=1940, 2007 n=1943. 2008 n=1981)
           60%
                                  53%
                                     50%51%
           50%


           40%          confident                                  unconfident

           30%
                    61% (57%)                     21%
                                                                  12% (16%)
                                                     20%
           20%
                                               15%
                 12%                                             13%
                        11%                                   10% 10%
           10%       6%                                                                         6% 6% 7%
                                                                               4% 3%
                                                                                       2%
           0%
                    Very            Fairly       Neither         Fairly          Very           Don't know
                  confident       confident   confident nor   unconfident     unconfident
                                               unconfident

                                                2006       2007    2008



Analysis by knowledge of regulation provided few differences amongst levels of consumer
knowledge (Table 14). Overall there is an increase in consumers who feel that, from their own
experience, they are treated fairly – 62% in 2008 compared with 57% in 2007.


Table 14: Consumer perception of TCF by awareness of financial regulation – Own
       experience
                       FSA prompted       Name or aware of          Assume
                                                                                       No
                            and            other financial         there is a                                Total
                                                                                    knowledge
                        unprompted           regulators            regulator
                              %                      %                 %                    %                   %
Very/fairly
                           68 (62)               59 (57)            64 (60)            57 (52)               62 (57)
confident
Neither confident
                           19 (21)               19 (15)            20 (20)            21 (22)               20 (21)
nor unconfident
Very/fairly
                           13 (14)               13 (27)            12 (17)            11 (15)               12 (16)
unconfident
Don’t know                  1 (1)                 9 (0)               4 (3)            11 (11)                7 (6)
Base                      632 (555)            127 (161)           285 (327)        937 (902)          1981 (1943)

* 2007 figures shown in brackets.
Consumers across different product categories displayed similar levels of confidence in financial
firms when asked about the level of confidence they had about personally being treated fairly
(Table 15). The overall increase in confidence that customers are treated fairly has increased by
type of product owned.


Table 15: Consumer perception of TCF by the products they own
                                                 Neither
                                                                             Don’t
                                  Confident   confident nor   Unconfident                Base
                                                                             know
                                               unconfident
Unit trusts, equity ISAs or
                              %    73 (68)       16 (18)         9 (12)       2 (2)    267 (255)
PEPs
Personal pension/FSAVC        %    71 (66)       16 (17)        12 (13)       2 (4)    407 (374)
Direct share ownership        %    70 (64)       17 (20)        13 (11)       1 (4)    234 (236)
Bonds or gilts                %    69 (66)       14 (14)        16 (17)       1 (3)     71 (93)
Own a low-risk financial
product (e.g. current or
                              %    61 (61)       21 (22)        11 (14)       7 (3)   655 (1039)
savings accounts) but none
of the other categories
Own no financial product      %    33 (36)       27 (41)        13 (17)      28 (6)    208 (127)

* Respondents can be in more than one of these categories. 2007 figures shown in brackets.

Almost three-quarters of consumers felt that firms had become no better or worse at treating their
customers fairly in the last 12 months (73%), but around one in ten (9%) said they felt firms had
become better, a slight decrease on 2007 (11%). 9% thought that firms had become worse at
treating them fairly (same as 2007).
Figure 10


     Treating customers fairly - own
     experience                                                                               RESTRICTED



     And thinking about the past 12 months, in general would you say that financial
     firms have become better or worse at treating you fairly? (% respondents, 2006 n=1940,
     2007 n=1943, 2008 n=1981)
         80%
                                             72% 73%
                                       69%
         70%

         60%

         50%

         40%

         30%

         20%                                                  15%
                                                                    11%
                           9%     9%                                      9%   9%   8%   9%
         10%         7%


            0%
                          Worse         No change               Better         Don't know

                                              2006     2007     2008




8.3 Consumer experience when dealing with financial firms
The 2008 survey contained questions on whether consumers have changed a financial product in the
last 12 months and if so, whether they experienced any problems. 13% of the consumers in the
survey had changed product over the last 12 months. Over two-thirds (71%) of these respondents did
not encounter any problems when switching a financial product while 10% faced major difficulties.


 Table 16: Whether consumers who have changed a financial product in the last 12 months
        experienced any problems

                                                                                              Total
                                                                                                %

 Did not encounter any difficulties in doing so                                                71
 Faced minor difficulties                                                                      18
 Faced major difficulties                                                                      10
 Don't know                                                                                    1
 Base                                                                                         263

* No figures available for previous years
Also introduced to the 2008 questionnaire were questions on whether consumers felt that
complaints were resolved fairly. Over half of all respondents (51%) were confident that complaints
would be resolved fairly. Just under one fifth (18%) of consumers were unconfident that complaints
would be resolved fairly. There is little difference amongst consumers aware of the FSA compared
to those who are not.

Table 17: Confidence that complaints would be resolved fairly

                       FSA prompted   Name or aware of     Assume
                                                                          No
                            and        other financial    there is a                    Total
                                                                       knowledge
                        unprompted       regulators       regulator
                            %                %                %            %                %

Confident                   56               49              52           48              51

Neither confident
                           24                18              26           21              23
no unconfident

Unconfident                 19               29              17           17              18

Don't know                  1                5                4           14                8

Base                       633              125              286          938           1982

* No figures available for previous years


25% of respondents had received financial advice about a financial product in the past 12 months.
The majority of these consumers had spoken to a financial adviser (46%) or an adviser at a bank or
building society (43%).



 Table 18: Source of advice by those who have had financial advice in past 12 months


                                                                                        %


 A financial adviser                                                                    46
 An adviser at a bank or building society                                               43
 An adviser at Citizens Advice                                                          2
 An accountant                                                                          3
 A solicitor                                                                            3
 Other                                                                                  4
 Base                                                                                  436

* No figures available for previous years
Table 19: Confidence that advice was appropriate to circumstances

                                                                    Citizens Advice,
                           A financial      Adviser at bank or        Accountant,
                                                                                           Total
                             adviser         building society         Solicitor or
                                                                         Other
                                %                   %                      %                 %

Confident                       92                 88                     81                89

Neither confident no
                                3                   5                      4                 4
unconfident

Unconfident                     6                   6                      6                 6

Don't know                      0                   0                      8                 1

Base                           199                 188                    45               436

* No figures available for previous years



The vast majority of consumers believed that advice received was appropriate to their
circumstances. Overall 89% of respondents were either very or fairly confident of advice received
being appropriate. The highest amount of consumers who were happy with advice were those
consumers who sought advice from a financial adviser. 6% of consumers were not confident that
advice received was appropriate to their circumstances.
9.      Financial crime
In 2007 questions were introduced to the survey on financial crime. The 2008 survey repeated these
questions and gives us an opportunity to measure whether there is any change. Consumer awareness
of their own vulnerability and their awareness of measures they can take to reduce exposure to the
risk is an important part of providing a robust defence against financial crime. Consumers may have
had their awareness of financial crime raised by recent publicised of lost data from official sources
or warnings against identity fraud.


9.1 Likelihood of becoming a victim of financial crime
Over two-thirds (72%) of consumers thought that it was very or fairly unlikely that they would be a
victim of some kind of financial fraud in the next year, a 5 point increase on the previous year.


Figure 11


     Likelihood of becoming a victim of
     financial fraud                                                                              RESTRICTED




     How likely do you think it is that you will be a victim of some kind of financial
     fraud in the next year? (% respondents, 2007 n=1943,2008 n=1981)
         45%
                                                   40%
         40%
                                                         35%
         35%                                                         32% 32%

         30%

         25%

         20%
                                  14% 15%                                                 14%
         15%
                                                                                     9%
         10%
                   4%   4%
            5%

            0%
                  Very likely    Fairly likely   Fairly unlikely   Very unlikely      Don't
                                                                                   Know/Refused

                                                 2008      2007
Table 20: Likelihood of becoming a victim of financial fraud


                             Has internet access     No internet access              Total

                                       %                      %                        %

Very likely                           4 (4)                 4 (3)                    4 (4)

Fairly likely                        16 (17)               10 (12)                  14 (15)

Fairly unlikely                      44 (39)               31 (28)                  40 (35)

Very unlikely                        29 (28)               41 (39)                  32 (32)

Don’t know/Refused                   7 (11)                14 (19)                   9 (14)
Base                               1369 (1255)            612 (686)               1981 (1943)

*2007 figures shown in brackets.

It is shown in table 20 that consumers with access to the internet were more likely to think that
they might become a victim of financial fraud than those without any access to the internet. Online
banking has become a mainstream way for consumers to manage their accounts – but also provides
security vulnerabilities for those who do not recognise the need to take necessary security
precautions.
9.2 Responsibility for the prevention of financial crime
The survey results show that just under half (49%) of respondents felt they had the main role in
preventing themselves being a victim of financial crime, just below the 2007 figure (51%). Just over
half thought that the main responsibility lay elsewhere (figure 12).

Figure 12



     Responsibility for fraud prevention
                                                                                       RESTRICTED




     Who has the main responsibility in preventing you from being a victim
     of fraud? (% respondents: 2007 n=1943, 2008 n=1981)

                   Don't Know          10%
                                       10%


                  Government            10%
                                      9%


                          FSA           10%
                                      9%


    Financial Services Industry            12%
                                       10%


                        Police        9%
                                        11%


      The individual (yourself)                                                 49%
                                                                                   51%
         2008
         2007                 0%     10%         20%       30%         40%     50%         60%
Those who were aware of the FSA (prompted or unprompted) were more likely to accept the main
responsibility themselves compared with those with no knowledge of regulation, a 5 point fall from
to 55% in 2008.


Table 21: Responsibility for prevention of financial crime by awareness of financial regulation

                                            Name or
                        FSA prompted                       Assume
                                         aware of other                   No
                             and                          there is a                   Total
                                            financial                  knowledge
                         unprompted                       regulator
                                           regulators
                               %               %              %            %            %
Government                   8 (7)           13 (8)         8 (5)       12 (11)       10 (9)
Police                       6 (5)           6 (9)          8 (9)       11 (15)       9 (11)
The individual
                            55 (60)         51 (50)        52 (54)      43 (45)       49 (51)
(yourself)
The financial
                            13 (12)         11 (11)        12 (12)       12 (8)       12 (10)
services industry
The FSA                     15 (14)         12 (16)        13 (12)       8 (4)        10 (9)
Don’t know                   3 (2)            6(7)          8 (8)       15 (16)       10 (10)
Base                       633 (555)       126 (161)      285 (327)    937 (902)   1981(1943)

* 2007 figures shown in brackets.
9.3 Actions taken to prevent financial fraud
                                                                                             sks
Although many people thought that consumers did have a main role to play in mitigating the risks of
financial crime, when asked about the actions they took themselves the results demonstrate that a
substantial number of people fail to take even the most basic precautions. Respondents were asked
what actions they currently take to avoid becoming a victim of financial fraud.


Figure 13 shows that the most common action taken was to shred unwanted financial
correspondence (37%). It should be noted that these responses were given unprompted and were
likely to be top-of-mind responses. Many consumers may have not been able to recall the actions
they take, or may carry out the action as a routine matter without necessarily associating it with an
action to prevent financial fraud. Other common top-of-mind responses included checking
bank/credit card statements (23%) and never writing down PIN numbers (20%).

Figure 13


     Actions taken to prevent financial
     fraud                                                                                                                                        RESTRICTED




     What do you currently do, if anything, to avoid becoming a victim of
     financial fraud? (UNPROMPTED ANSWERS % respondents: 2007 n=1943; 2008 n=1981)
                                                            d o nt use at ms      0%
                                                                                    1%
                                                  d o nt use cr ed it car d s       1%
                                                                                    1%
                                       d o no t d ivulg e p er so al d et ails     1%
                                    o nly d eal wit h rep ut ab le co / sit es     1%
                                                                                   1%
                                     car e at A T M / co ver/ hid e p in num       1%
                                                                                   1%
                                                   keep everyt hing saf e            2%
                                                                                     2%
                                         keep clo se eye o n ever yt hing            2%
                                                                                     2%
                            Ob t ain yo ur cred it ref f ile o n reg b asis           3%
                                                                      o t her s      2%
                                                                                               7%
                          A vo id clicking o n web sit e links in emails                            9%
                                                                                                   8%
                 C heck t he id o f a co b ef o re int ernet t ransact io n                   6%
                                                                                                   8%
                       Have d if f p asswo r d s f o r d if f erent acco unt s                6%
                                                                                                 8%
                                           R eg ularly up d at e ant i- vir us                 7%
                                                                                                  9%
                                                                d o n' t kno w                           11%
                                                                                                         11%
                                                                        no ne                                     14 %
                                                                                                               13 %
      C aref ully d isp o se o f f inancial co rresp b ut d o no t shred it                              11%
                                                                                                                      15%
                                A vo id g iving d et ails o n t he int ernet                                            16 %
                                                                                                                        16 %
                                         N ever writ e d o wn p asswo r d s                              11%
                                                                                                                         16 %
                              Keep yo ur p in no s and car d s sep arat e                                      13 %
                                                                                                                         16 %
                            A vo id g iving p er so nal d et ails o n p ho ne                                                    20%
                                                                                                                                       23%
                                  N ever writ e d o wn yo u p in numb er s                                                       20%
                                                                                                                                         24%
                                     R eg ularly check yo ur st at ement s                                                             23%
                                                                                                                                           2 5%
                     Shr ed all unwant ed f inancial co rr esp o nd ence                                                                            3 7%
                                                                                                                                                       38%



                                                                             0%          5%        10% 15%                      20% 25% 30% 35% 40%
figure 14 shows that when respondents were given a list of possible actions they may take and again
asked which actions they take there was a more positive response ranging from 70% of people who
said they never write down their PIN to ten per cent who said they obtain their credit file on a
regular basis. There are no significant changes from the responses provided the previous year.
Figure 14


       Actions taken to prevent financial
       fraud                                                                                                                                   RESTRICTED




      What do you currently do, if anything, to avoid becoming a victim of
      financial fraud? (UNPROMPTED AND PROMPTED % respondents: 2007 n=1943; 2008 n=1981)
                                       Ob t ain yo ur cr ed i t r ef f il e o n r eg b asi s      10%
                                                                                                  10%
    check t he id ent i t y o f a co mp any b ef o r e amki ng int er net t r ansact i o n               27%
                                                                                                         27%
                                     A vo id cli cki ng o n web sit e li nks in emai l s                     34%
                                                                                                           31%
                                                       R eg ul ar ly up d at e ant i - vi r us                  35%
                                                                                                               34%
               C ar ef ull y d isp o se o f f inanci al co r r esp b ut d o no t shr ed it                30%
                                                                                                                35%
                                  Have d if f p asswo r d s f o r d if f er ent acco unt s                      35%
                                                                                                                 36%
                                            A vo i d g i vi ng d et ai ls o n t he i nt er net                           47%
                                                                                                                       44%
                                                     N ever wr i t e d o wn p asswo r d s                                      54%
                                                                                                                                55%
                                         Keep yo ur p in no s and car d s sep ar at e                                          54%
                                                                                                                                 57%
                                Shr ed all unwant ed f inanci al co r r esp o nd ence                                                    65%
                                                                                                                                       62%
                                       A vo id g i ving p er so nal d et ai ls o n p ho ne                                             63%
                                                                                                                                         65%
                                                R eg ul ar l y check yo ur st at ement s                                                   68%
                                                                                                                                          67%
                                             N ever wr it e d o wn yo u p i n numb er s                                                        70%
                                                                                                                                               70%


                                                                                            0%   10% 20% 30% 40% 50% 60% 70% 80%
Focusing more closely on possible internet-specific actions taken by respondents with access to the
internet (table 22), three-fifths (60%) said that they didn’t write down passwords, 59% avoid giving
personal details out over the internet. Less than half (49%) regularly update anti virus software
while 44% said that they had different passwords for different accounts and only about a third (35%)
said that they checked the identity of companies before making internet-based transactions.


 Table 22: Actions taken (spontaneous and prompted)
                                                                                   Respondents
                                                                                  with access to
                                                                                   the internet
                                                                                         %
 Never write down passwords                                                          60(62)
 Avoid giving personal details out on the internet                                   59(56)
 Regularly update anti virus software                                                49(50)
 Have diff passwords for different accounts                                          44(46)
 Avoid website links in emails that take you to a financial institution              46 (43)
 Check the identity of a company before making an internet-based transaction         35(36)
 Base                                                                                 1369

* 2007 figures shown in brackets.
10. Appendix A: 2008 Questionnaire

                        FINANCIAL REGULATION
                        ALL ADULTS 16+ SECTION ANSWERED                              01 ASK Q1


Question 1
Do you know of any official bodies or watchdogs regulating the
activities of people and companies which sell financial products ?
        1       Yes
        2       No
        3       Don't know


If [ Q1 , 1 ] otherwise continue at question 3

DO NOT SHOW SCREEN FOR NEXT QUESTION

Question 2
MULTI CHOICE
Q.2 Which official bodies have you heard of who regulate the people and
companies which sell financial products ?
DO NOT PROMPT. CODE ALL THAT APPLY
      1       Bank of England
      2       FSA (Financial Services Authority)
      3       Ombudsman\Financial Ombudsman
      4       Stock Exchange
      5       PIA (Personal Investment Authority)
      6       SFA (Securities and Futures Association)
      7       SIB (Securities and Investment Board)
      8       LAUTRO (Life Assurance and Unit Trust Regulatory Organisation)
      9       IMRO (Investment Management Regulatory Organisation)
     10       FIMBRA (Financial Intermediaries, Managers and Brokers Regulatory Association)
     11       The Pensions Regulator


If [ Q1 , 2 TO 3 or Q200 , 12 TO 13 ] otherwise continue at question 5
Question 3
SHOW SCREEN AND READ OUT
Q.3 May I just check, do you...
       1        Know that there is an organisation that regulates people and firms in financial
services, but you don't know or cannot remember it's name
       2        Assume that there is an organisation that oversees this area but are not sure
       3        Or have you never thought about it


If [ Q3 , 1 ] otherwise continue at question 5
Question 4
SHOW SCREEN
Q.4 The FSA, or the Financial Services Authority is the body that
regulates the financial services industry. Which one of the following best
applies to you ?
        1           The FSA was the organisation you were thinking of but could not remember
        2           You were thinking of a different organisation
        3           You're not sure


If [ Q1 , 1 and not Q2 , 2 , 12 , 13 ] otherwise continue at question 6
Question 5
SHOW SCREEN
Q.5 The FSA, or the Financial Services Authority is the body that
regulates the financial services industry. Before this survey which
one of the following best applies to you ?
      1         You had heard of the FSA but couldn't remember the name
      2         You think you might have heard of it
      3         You haven't heard of it at all


If [ Q6 , 1 TO 5 ] otherwise continue at question 7
Question 6
DO NOT SHOW SCREEN UNTIL TOLD TO DO SO

Question 6
MULTI CHOICE
Q.6 What do you think are the main activities of a financial watchdog ?
DO NOT PROMPT. CODE CAREFULLY AGAINST LIST BELOW
      1      Compensation for consumers
      2      Ensuring only appropriate people\firms can work in financial services
      3      Selling practices\prevent miss-selling
      4      Consumer education
      5      Consumer information
      6      Ensuring firms have appropriate monetary reserves\pay out money
      7      Prosecuting firms\individuals for misdeeds
     10      Ensuring that financial firms treat their customers fairly
      8      Other


If [ Q6 , 1 , 2 ] otherwise continue at question 8
Question 7
SHOW SCREEN AND READ OUT
Q.7 I'm now going to read you statements about what the FSA does and I would
like you to tell me whether you knew this before this interview...
...The FSA checks firms and individuals to make sure they meet certain
standards in order to work in financial services including whether
individuals are qualified and companies have enough money to operate.
Which of the following best applies to you ?
       1         I definitely knew the FSA did this
       2         I thought they must do this
       3         I thought some organisation must be doing something like this but didn't know who
       4         I didn't know this was done by anyone
       5         I haven't thought about it before

Question 8
SHOW SCREEN
Q.8 How confident are you that financial firms in the UK have adequately
qualified staff and enough money to operate ?
You're confident that...
      1        All firms reach these standards
      2        Most firms reach these standards
      3        Some firms reach these standards
      4        Few firms reach these standards
      5        I'm not confident that any firms reach these standards
      6        I don't know

Question 9
SHOW SCREEN
Q.9 The FSA makes sure that banks, building societies, insurance companies
and other financial institutions hold enough funds to pay out their
customers in normal circumstances. Which of the following applies to you ?
      1        I definitely knew the FSA did this
      2        I thought they must do this
      3        I thought some organisation must be doing something like this but didn't know who
      4        I didn't know this was done by anyone
      5        I haven't thought about it before

Question 10
SHOW SCREEN
Q.10 How confident are you that financial firms in the UK hold enough
funds to pay out their customers in normal circumstances ?
You're confident that...
      1       All firms reach these standards
      2       Most firms reach these standards
      3       Some firms reach these standards
      4       Few firms reach these standards
      5       I'm not confident that any firms reach these standards
      6       I don't know

Question 11
SHOW SCREEN
Q.11 The FSA fines and sanctions firms for breaking its rules.
Which of the following best applies to you ?
      1        I definitely knew the FSA did this
      2        I thought they must do this
      3        I thought some organisation must be doing something like this but didn't know who
      4        I didn't know this was done by anyone
      5        I haven't thought about it before

Question 12
SHOW SCREEN
Q.12 When people buy investment products the FSA requires that salespeople
and financial advisors ensure that the product is suitable for the
consumer. Which of the following best applies to you ?
      1        I definitely knew the FSA did this
      2        I thought they must do this
      3        I thought some organisation must be doing something like this but didn't know who
      4        I didn't know this was done by anyone
      5        I haven't thought about it before
Question 13
SHOW SCREEN
Q.13 How confident are you that financial firms in the UK ensure that
investment products they sell are suitable for the needs of the
consumers ?
You're confident that...
      1       All firms reach these standards
      2       Most firms reach these standards
      3       Some firms reach these standards
      4       Few firms reach these standards
      5       I'm not confident that any firms reach these standards
      6       I don't know


If [ Q6 , 1 , 2 ] otherwise continue at question 16
Question 14
SHOW SCREEN
Q.14 Overall how confident are you that the FSA is effectively regulating
the financial services industry ?
       1        Very confident
       2        Fairly confident
       3        Neither confident nor unconfident
       4        Fairly unconfident
       5        Very unconfident

Question 15
SHOW SCREEN
Q.15 And overall how confident are you that UK firms follow the FSA's rules ?
      1      Very confident
      2      Fairly confident
      3      Neither confident nor unconfident
      4      Fairly unconfident
      5      Very unconfident

Question 16
SHOW SCREEN
Q.16 When firms operate they have to follow certain rules. These include
that their staff are qualified, that they have enough funds to pay out to
customers and that products sold to consumers are suitable for their
needs. Overall how confident are you that this actually takes place?
       1         Very confident
       2         Fairly confident
       3         Neither confident nor unconfident
       4         Fairly unconfident
       5         Very unconfident

Question 17
SHOW SCREEN
Q.17 The FSA regulates a wide range of different types of financial firms
including banks, building societies, insurance providers and independent
financial advisers.
Do you think firms that are regulated are ever allowed to go bankrupt -
that is go out of business ?
        1           Yes, all types of firms
        2           Only some types of firms
        3           No firms


If [ Q17 , 2 TO 3 ] otherwise continue at question 18
Question 18
DO NOT SHOW SCREEN UNTIL TOLD TO DO SO

Question 18
MULTI CHOICE
Q.18a Why do you think <?> are not allowed to go bankrupt ?
CODE ALL THAT APPLY. DO NOT PROMPT.
      1     Government\regulator will always bail them out
      2     Large firms never go bankrupt
      3     Some firms are too important to be allowed to go bankrupt
      4     Too many consumers would be affected
      5     Government would never allow consumers to lose money
      6     Don't know any firm that has ever gone bankrupt
      7     Only know of a small number of firms that have ever gone bankrupt
      8     People would lose confidence in financial system
      9     Other


If [ Q17 , 2 ] otherwise continue at question 19
Question 18
SHOW SCREEN - MULTI CHOICE
Q.18 Are there particular types of firms which are not allowed to go
bankrupt or are all types of firm allowed to go bankrupt ?
      1       All firms are allowed to go bankrupt
      2       Banks
      3       Building societies
      4       Insurance companies
      5       Independent financial advisers
      6       Mortgage brokers
      7       General insurance brokers


If [ Q17 , 1 TO 2 ] otherwise continue at question 21
Question 19
DO NOT SHOW SCREEN UNTIL TOLD TO DO SO

Question 19
Q.19 Do you think that consumers can lose money because a firm has become
bankrupt ?
      1      Yes
      2      No


If [ Q19 , 2 ] otherwise continue at question 21
Question 20
MULTI CHOICE
Q.20 Why do you think consumers will not lose money as a result of a firm
going bankrupt ? DO NOT PROMPT. CODE ALL THAT APPLY
      1         A compensation scheme (Ombudsman\regulator\FSA etc) will pay out to cover all or
some of the losses
      2         The Government will pay out
      3         Other firms will be asked to pay out
      4         Other

Question 21
SHOW SCREEN
Q.21 Which of the following statements best describes your attitude to
savings and investment risk ?
       1         I am not willing to take any risk with my savings or investments
       2         I am prepared to have some of my savings or investments in higher risk products than
in the building society\bank savings accounts
       3         I am prepared to take higher risks to get higher returns

Question 23
Q.23 Are you responsible for taking financial decisions in your
household, either solely or jointly ?
      1       Yes
      2       No

Question 24
SHOW SCREEN - MULTI CHOICE
Q.24 Please have a look at this screen and tell me which, if any, of the
following financial products do you currently have (including owned jointly) ?
CODE ALL THAT APPLY

       1           Current\cheque account at a bank\building society
       2           Savings account
       3           National Savings Accounts or certificates
       4           Premium Bonds
       5           TESSA or Cash ISA
       6           Bonds and Gilts (Government or corporate)
       7           Personal Equity Plan (PEP)
       8           Equity, share or unit trust ISA
       9           Unit trust or Investment trust or OEIC
      10           Mortgage endowment
      11           Repayment mortgage
      12           Interest only mortgage
      13           Personal pension \ Free Standing AVCs
      14           Direct ownership of Shares
      15           Other investments


If [ Q24 , 1 TO 15 ] otherwise continue at question 24a
Question 24b
Q.24A Have you attempted to change any of your financial products to a product from
a different firm in the last 12 months ?
       1         Yes
       2         No
If [ Q24 , 1 ] otherwise continue at question 24b
Question 24b
SHOW SCREEN
Q.24B And when you changed your financial product to a product from another firm,
would you say you... ?
      1      Did not encounter any difficulties doing so
      2      Faced minor difficulties
      3      Faced major difficulties

Question 24c
SHOW SCREEN
Q.24C If you needed to make a complaint to a financial firm, how confident would you
be that the firm would resolve your complaint fairly ?
      1         Very confident
      2         Fairly confident
      3         Neither confident nor unconfident
      4         Fairly unconfident
      5         Very unconfident


If [ Q24 , 1 TO 15 ] otherwise continue at question 25
Question 24d
Q.24D Have you received professional financial advice about a financial product
in the past 12 months ?
       1       Yes
       2       No


If [ Q24d , 1 ] otherwise continue at question 25
Question 24e
SHOW SCREEN
Q.24E Thinking about the last time you received such advice, did it come from… ?
      1      A Financial Adviser
      2      An adviser at a bank or building society
      3      An adviser at Citizens Advice or Council advice agency
      4      An accountant
      5      A solicitor
      7      Other

Question 24f
SHOW SCREEN
Q.24F Thinking about the advice you received, how confident are you that the advice
was appropriate to your circumstances ?
      1       Very confident
      2       Fairly confident
      3       Neither confident nor unconfident
      4       Fairly unconfident
      5       Very unconfident

Question 25
SHOW SCREEN
Q.25 IN GENERAL, how confident are you that financial firms treat their
customers fairly ?
      1       Very confident
      2       Fairly confident
      3       Neither confident nor unconfident
      4       Fairly unconfident
      5       Very unconfident

Question 27
SHOW SCREEN
Q.27 Now thinking about YOUR OWN EXPERIENCE, how confident are you that
financial firms will treat YOU fairly ?
      1         Very confident
      2         Fairly confident
      3         Neither confident nor unconfident
      4         Fairly unconfident
      5         Very confident

Question 27a
Q.27A And why do you feel unconfident that you will be treated unfairly ?
PROBE : Any other reason ?

Question 28
SHOW SCREEN
Q.28 And thinking about YOUR OWN EXPERIENCE over the past 12 months, would
you say that financial firms have become at treating YOU
fairly, or has there been no change ?
        1        Worse
        2        Better
        3        No change

Question 28a
Q.28A Have you personally been treated unfairly by a financial firm
in the last 12 months ?
       1        Yes
       2        No

Question 28b
SHOW SCREEN - MULTI CHOICE
Q.28B And what type of financial product or products did this unfair treatment
relate to ?
CODE ALL THAT APPLY
        1           Current\cheque account at a bank\building society
        2           Savings account
        3           National Savings Accounts or certificates
        4           Premium Bonds
        5           TESSA or Cash ISA
        6           Bonds and Gilts (Government or corporate)
        7           Personal Equity Plan (PEP)
        8           Equity, share or unit trust ISA
        9           Unit trust or Investment trust or OEIC
       10           Mortgage endowment
       11           Repayment mortgage
       12           Interest only mortgage
       13           Personal pension \ Free Standing AVCs
       14           Direct ownership of Shares
       15           Other investments
       16           Other


If [ Q6 , 1 , 2 ] otherwise continue at question 30
Question 29
SHOW SCREEN
Q.29 The Financial Services Authority provides impartial
information to consumers to help them make financial decisions.
Which of the following best applies to you ?
      1        I definitely knew the FSA did this
      2        I thought they must do this
      3        I thought some organisation must be doing something like this but didn't know who
      4        I didn't know this was done by anyone

Question 30
SHOW SCREEN - MULTI CHOICE
Q.30a Which, if any, of these things do you personally keep an eye on ?
CODE ALL THAT APPLY
      1      Changes in the housing market
      2       Changes in the stock market
      3       Changes in interest rates
      4       Changes in inflation
      5       Changes in taxation, e.g. income tax, capital gains tax
      6       Changes in the job market
      7       Changes in state pension, benefits and tax credits
      8       Best buys in financial products


If [ Q30 , 9 TO 11 ] continue at question 31
Question 30b
SHOW SCREEN
Q.30b And how frequently do you monitor it\them ?
      1      At least once a week
      2      At least once a month, but not once a week
      3      Less than once a month
Question 31
      1             Government
      2             Police
      3             The individual (yourself)
      4             Financial Services industry (e.g. banks, trade bodies, insurance companies etc.)
      5             The financial services regulator

Question 31
SHOW SCREEN
Q.31 Who has the main responsibility in preventing you from being a victim
of financial crime (e.g. fraud) ?
       1        Government
       2        Police
       3        The individual (yourself)
       4        Financial Services industry (e.g. banks, trade bodies, insurance companies etc.)
       5        The financial services regulator


If [ Q31 , 6 ] continue at question 32
Question 31a
SHOW SCREEN
Q.31a And who would you place next in order of having responsibility
in preventing you from being a victim of financial crime (e.g. fraud) ?
      1        Government
      2        Police
      3        The individual (yourself)
      4        Financial Services industry (e.g. banks, trade bodies, insurance companies etc.)
      5        The financial services regulator


If [ Q31a , 6 ] continue at question 32
Question 31b
SHOW SCREEN
Q.31b And who would you place next in order of having responsibility
in preventing you from being a victim of financial crime (e.g. fraud) ?
      1        Government
      2        Police
      3        The individual (yourself)
      4        Financial Services industry (e.g. banks, trade bodies, insurance companies etc.)
      5        The financial services regulator


If [ Q31b , 6 ] continue at question 32
Question 31c
SHOW SCREEN
Q.31c And who would you place next in order of having responsibility
in preventing you from being a victim of financial crime (e.g. fraud) ?
      1        Government
      2        Police
      3        The individual (yourself)
      4        Financial Services industry (e.g. banks, trade bodies, insurance companies etc.)
      5        The financial services regulator
If [ Q31c , 6 ] continue at question 32
Question 31d
SHOW SCREEN
Q.31d And who would you place next in order of having responsibility
in preventing you from being a victim of financial crime (e.g. fraud) ?
      1        Government
      2        Police
      3        The individual (yourself)
      4        Financial Services industry (e.g. banks, trade bodies, insurance companies etc.)
      5        The financial services regulator

Question 32
SHOW SCREEN
Q.32 How likely do you think it is that you will be a victim of some kind
of financial fraud in the next year ?
       1        Very likely
       2        Fairly likely
       3        Fairly unlikely
       4        Very unlikely

Question 33
DO NOT SHOW SCREEN FOR NEXT QUESTION

Question 33
MULTI CHOICE
Q.33a What do you currently do, if anything, to avoid becoming a victim of
financial fraud ? DO NOT PROMPT

        1         Shred all unwanted financial correspondence (e.g. bank statements\letters, credit card
bills, etc.)
        2         Carefully dispose of all financial correspondence but do not shred it
        3         Avoid giving personal details over the telephone
        4         Avoid giving personal details over the internet
        5         Never write down your PIN numbers
        6         Keep your PIN numbers and credit \ debit cards separate
        7         Obtain a copy of your credit reference file on a regular basis
        8         Regularly check your bank\credit card statements
        9         Regularly update anti virus software on a personal computer
       10         Avoid clicking on website links contained in e-mails that take you to the website of a
financial institution
       11         Check the identity of a company before making an internet-based transaction
       12         Never write down passwords
       13         Have different passwords for different accounts
       14         Other

Question 33b
SHOW SCREEN - MULTI CHOICE
Q.33b And looking at the following list, what else do you currently do, if
anything, to avoid becoming a victim of financial fraud ? CODE ALL THAT APPLY
        1         Shred all unwanted financial correspondence (e.g. bank statements\letters, credit card
bills, etc.)
        2         Carefully dispose of all financial correspondence but do not shred it
        3         Avoid giving personal details over the telephone
        4         Avoid giving personal details over the internet
        5         Never write down your PIN numbers
        6         Keep your PIN numbers and credit \debit cards separate
        7         Obtain a copy of your credit reference file on a regular basis
        8         Regularly check your bank\credit card statements
        9         Regularly update anti virus software on a personal computer
       10         Avoid clicking on website links contained in e-mails that take you to the website of a
financial institution
       11         Check the identity of a company before making an internet-based transaction
       12         Never write down passwords
       13         Have different passwords for different accounts
       14         Other

Question 34
SHOW SCREEN AND MULTICHOICE
Q.34 And which of the following activities, if any, do you use the Internet for
regularly nowadays ?
      1       Banking
      2       Booking Travel
      3       Downloading Music or Videos
      4       E-mail
      5       Reading News
      6       Shopping

End of questionnaire
The Financial Services Authority
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Website: http://www.fsa.gov.uk
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