A government steering group has published recommendations for ‘simple’ financial products.
Mark Hoban, Financial Secretary to the Treasury, said the aim for was products that will better enable consumers to navigate the financial services market.
The independent steering group, chaired by Carol Sergeant, formerly of Lloyds Banking Group, has published its initial report following consultation with a range of consumer groups and industry representatives.
In the report it proposes:
an easy access savings account;
a 30 day notice account;
a simple term life insurance product;
a ‘Simple Products’ accreditation body to ensure that these products are meeting core standards outlined by the group; and
an accompanying ‘kite mark’ badge to ensure that these products are clearly identifiable to consumers.
The full set of initial recommendations set out in the report will now be open for further consultation, ahead of publication of the final report in February 2013.
“The government is committed to putting the consumer back at the heart of the financial system, but we understand that restoring public trust in financial products is not an easy task at the moment,” said Hoban.
“I am pleased to say that ‘simple’ financial products offer a unique opportunity to demonstrate that products can both be easy to understand and meet customers’ most important financial needs.”
Sergeant said: “When consumers arrive at the financial marketplace there should be simple processes and products available to allow them to make an informed and straightforward decision. I would like to thank all the participants from consumer groups and industry who have engaged with the project so far, and look forward to the next stage in this process.”
Adrian Coles, Director-General of the Building Societies Association, said: “We have been pleased to participate in this initiative and welcome the publication of the consultation document today. This moves the market one step closer to a small range of kite-marked and directly comparable products.
“A number of key questions remain however, not least whether there is a viable consumer market for such a product set. Our next step is to consult with our members and listen to the views of others.”