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
- that the first simple products to be developed
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.