CII Briefing: HM Treasury Consultation on "Simple Products"

On 13 December, the Treasury published a consultation paper suggesting that the industry develop a range of simple and straightforward financial products that will " help promote personal responsibility, enable consumers to compare products and understand product features more clearly". It is also hoped the proposals will help to encourage competition between providers. The consultation puts forward the following ideas:

- industry and consumer-led development of a new category of simple financial products, with standardised features;

- that the first simple products to be developed should be deposit savings and life and income protection insurance products; and

- that simple products should not be subject to price-caps, and provision should be voluntary.

This briefing provides an overview of the consultation document. To read the publication in full visit: http://www.hm-treasury.gov.uk/consult_simple_financial_products.htm. The closing date for responses: 25 March 2011.