The Financial Services Authority (FSA) will increase its spending on consumer education from £5m (€7.9m) this year to £8m in 2002.

The increase is aimed at raising the level of understanding of financial products among the general public. Christine Farnish, the FSA's director of consumer relations, said: &quotIt is precisely this lack of understanding that can lead to people being saddled with financial products that are not suitable for them.&quot In the long term increased consumer sophistication should help improve the savings rate in the UK, meaning more funds for asset managers to manage.