The Bankwatch

Tracking the consumer evolution of financial services

Simple products consultation launched by HM Treasury in UK

A consultation has been launched with a view to increased simple and understandable products to be made available to the mass market consumer.  There are two papers on this site, one introducing the consultation and requesting responses and the other detailing lessons from prior ‘simple product initiatives. 

The main lessons seem to be that enforced government ‘simplicity’ can increase provider costs, and that pricing caps hinder the development of more expensive simple products.  This is interesting because it infers the result might be simple and expensive products?  Anyhow, here are the details.

Simple financial products consultation | HM Treasury

The Government is committed to helping consumers take responsibility for their finances. This consultation sets out the Government’s proposed principles for a new category of simple products, giving consumers a straightforward option for comparing and buying products. Simple products should ensure that people understand the products they need, help them make better choices, and encourage competition in the market.

Alongside the consultation we are also publishing an independent literature review by Professor James Devlin on previous simple products initiatives, namely CAT standards and stakeholder products.

This consultation is open to all members of the public with an interest, particularly those in the financial services industry and consumer groups.

  • Simple financial products: a consultation
  • Literature Review on Lessons Learned from Previous “Simple Products” Initiatives
  • Written by Colin Henderson

    December 14, 2010 at 10:47

    Posted in Uncategorized

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