Clerical Medical is calling on the FSA to clear up lastminute confusion on product sales literature ahead of the introduction of multi-ties.
The company says that under current FSA plans, which come into force on Friday for stakeholder, the retailer is only required to show the product provider's name on the terms of business letter and the key features document.
The terms of business letter will show all the potential multi-ties of the retailer while the KFD will only carry the provider's name. But Clerical says this is not enough for consumers to understand who is selling them the product.
It says KFDs only give product terms and do not provide enough corporate information, such as financial strength and investment performance, which it believes is critical to making a decision.
Head of PR Tony Bloomer says: “Consumers want full and clear disclosure before buying a product. Relying on the key features document alone is not enough. The FSA must legislate for full provider disclosure before the sale so the consumer knows who they are buying from. Choosing a product is just as much about choosing a company.”
FSA spokeswoman Louise Buckley says: “The key features document has to have the logos of both providers and each must have equal positioning and clarity. But the terms of business letter will also explain which other providers are available and the adviser will have to make clear to the customer whose products they are selling.”
Richard Jacobs Pension & Trustee Services director Richard Jacobs says: “A lot of work has been done to make clear to consumers who is responsible for the sale and who they are buying the product from. I would be amazed if one in 10 people read the key features document. People trust the person at the point of sale. The FSA cannot leave that up to small print in the key features document.”