The FSA’s discussion paper, “Informing Consumers: a review of product information at the point of sale”, includes the results of consumer research which suggests that consumers sometimes find it difficult to understand the product information provided at the point of sale.

This is consistent with the financial services industry’s own research, which led to the recent launch of the Raising Standards quality mark scheme. One of the scheme’s objectives is to improve the clarity and comparability of documentation within the current disclosure regime. As a result, the standards underpinning the scheme already address many of the points raised by the FSA’s discussion paper, for example the standards introduce a clear communications test, set out the way in which charges and benefits should be presented and will lead to the elimination of charging structures that consumers find most difficult to understand.

Mary Francis, ABI’s Director General, said:

“Insurers know that improved consumer understanding of financial products is vital. Through its Raising Standards quality mark scheme, the industry is working hard to improve the clarity and comparability of point of sale documentation.

“Insurers are keen to build on the improvements that will be introduced as a result of the Raising Standards scheme and we welcome the FSA’s initiative to improve disclosure in the longer term, provided the changes to the regime are both practical and cost effective.”

Notes

Enquiries to-

Vic Rance 020 7216 7440, 020 8647 5188 (home)
Malcolm Tarling 020 7216 7410, 020 8297 9510 (home)
Suzanne Moore 020 7216 7411, 077128 41183 (mobile)



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