Treasury sets up simple products steering group

20 October 2011 11:58 am | By Natalie Holt

The Treasury has created a steering group to develop a range of simple financial products headed up by former FSA director Carol Sergeant.

The group, made up of representatives from Government, industry, and trade and consumer bodies, will report back to Treasury financial secretary Mark Hoban (pictured) by July 2012.

It will set out how to bring simple products to market, including how simple products should be structured and marketed to ensure consumers get the best deal.

The Government has also published responses to its consultation on simple products published in December.

The idea is that a range of simple products will promote personal financial responsibility and allow consumers to better compare financial products.

Responses support the proposal put forward in the consultation paper for the steering group to focus first on developing simple savings and protection products. Simple investment products that will help consumers save for the long-term are also likely to be considered by the group.

Treasury financial secretary Mark Hoban says: “Simple financial products have the potential to help many consumers make decisions that will help them save for the first time and plan for a secure financial future for them and their families. I am delighted that Carol Sergeant has agreed to chair a steering group to develop the thinking on simple products further and to work with industry and consumer groups to bring them to fruition.”

Carol Sergeant, a former FSA director and former Lloyds Banking Group chief risk officer, will chair the steering group.

Sergeant says: “Simple, easy to understand products need to be a viable commercial proposition for the industry, while offering consumers a straightforward benchmark that gives them the confidence to make good decisions in an often bewilderingly complicated market place.

“Getting this right will require the involvement of consumer groups, financial regulators and the Money Advice Service, as well as the savings, investment and protection industries. I look forward to working with all key stakeholders on this.”

Association of British Insurers director general Otto Thoresen says:”We welcome the Treasury’s announcement that Carol Sergeant has been appointed to set up and chair a simple products steering group. Appointing someone with the wealth of experience that Carol brings to the role shows that the Treasury are taking this issue seriously.

“The creation of the steering group is an important step given how critical it is to find ways to reach more of the population with products they can understand and access in a way that suits them, and the need to make products simple to use but sophisticated enough to meet customers’ needs and expectations. We look forward to working with Carol and the steering group to develop concrete proposals to make it easier for consumers to confidently choose financial products to meet their needs.”

If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing