Davies will make his feelings clear at the FSA’s third education conference tomorrow, where he will talk about investing in the next generation by delivering personal finance education, both in the classroom and through other channels.
Davies said: "We must not write off as a lost cause those adults who currently have little or no understanding of how the financial system works. As the current debate over the future of pensions demonstrates, no one today can afford to have their head in the sand about finance.
"So, the priority must be to raise the base level of adult financial literacy. This will not only help us achieve our objective of promoting public understanding of the financial system but also improve consumer protection and reduce the opportunities for financial crime.
"Clearly this is a long-term goal. We have already made a good start, with basic advice leaflets available in post offices and advice centres, for example. We have also recently proposed improvements that aim to make basic financial advice much more accessible. But there is also an important role for the industry to play here and we should not underestimate the contribution that financial media can make.
"Ultimately, a long-term programme of cultivating awareness and understanding among consumers will achieve more consumer protection than any rules or regulations can ever hope to."
The conference will be held at the FSA, 25 The North Colonnade, Canary Wharf E14 5HS.
