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&#39Cut the jargon of complicated and long key features documents&#39

Key feature documents are in need of dramatic simplification as in their current complicated format they serve no purpose whatsoever claims Sandler.
He is advocating KFDs which do not include much of the current jargon and that are significantly reduced in length.
The suggestion has been greeted positively by IFAs who agree with Sandler&#39s assertion that KFDs are too long and too complicated.
Sandler envisions KFDs would include only the level of charges, the investment objective and investment strategy of products and any obligations to maintain payments for a certain minimum period.
They would be handed to investors at the beginning of the sales process rather than after the deal has been done.
For educated investors who wanted more information, a second set of detailed KFDs would be available on request, similar to that of the proposed FSA changes for with-profits disclosure.
Alongside the KFDs, investors would also be given a Consumer Guide listing simple questions they should ask their adviser before purchase.
Wentworth Rose managing director Philip Rose says: “Over disclosure is as bad as no disclosure. If it is any longer than two to three pages, investors will not read it.”
Sofa chairman John Porteous says: “Adding a Consumer Guide certainly will not quicken the sales process but would increase consumer understanding about what they are buying.”

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