The Financial Services Consumer Panel says that consumers must have access to straight forward products that deliver clearly defined results to restore trust in financial services in the wake of Payment Protection Insurance misselling.
The panel says that product complexity means many consumers find choosing the right products a stressful and unrewarding experience.
FSCP chair Adam Phillips says: “The Panel wants to see consumers given access to products that do what they say on the tin. Following the banking crisis and the PPI debacle it is crucial to rebuild trust in financial services. We think the ability to buy products that have straightforward objectives and which deliver clearly defined results will help do this.”
Alongside its call the panel released a research paper which says these products should have limited and well understood risks to capital and be purchased through any distribution channel.The panel put forward its suggestion to Government in its submission to the Treasury’s consultation on simple products.
Phillips says: “In the future we look to the development of a range of straightforward outcome products which, depending on the individual consumer, could either be sold via execution only or through an advice process.”