The Treasury has launched a consultation on simple financial products with proposals for financial products that will help promote personal responsibility, enable consumers to compare products and understand product features more clearly. The proposals will also help to encourage competition between providers.
The consultation proposes:
- Industry and consumer-led development of a new category of simple financial products, with standardised features
- The first simple products to be developed should be deposit savings and life and income protection insurance products
- Simple products should not be subject to price-caps, and provision should be voluntary.
The Government is now seeking input from consumer groups, the financial services industry, and other interested parties, to develop simple products.
The financial secretary to the Treasury, Mark Hoban, says,” The government is committed to helping consumers take responsibility for their finances. In order to do this they need to be able to make sense of the huge range of financial products in the market. Simple financial products will help them to do that, by providing a safe choice and a common benchmark against which other products can be compared."