A group of seven Conservative MPs is calling for simpler regulation of retail financial services including boiling down product disclosure to consumers into a single page of information.
A new report from the Free Enterprise Group also suggests care Isas with far higher contribution rates than the current Isa regime should be introduced to encourage families to save to cover the cost of long-term care.
It calls for working pensioners to pay national insurance contributions and for businesses with less than 3 staff and £75,000 turnover to be exempt from employment regulation, including auto-enrolment.
The MPs say FSA regulation has been an “overly bloated failure”, that increased regulatory activity has led to the idea of caveat emptor being abandoned and that the “mission creep” of the incoming Financial Conduct Authority should be limited.
It says: “Those of us who believe in free markets and free enterprise are faced with a big challenge when it comes to the market for consumer financial products. Human beings are generally bad at making decisions about money. In addition, the sellers of financial products almost inevitably know a great deal more about them than the buyer.
“Consumer paperwork should be limited to a maximum of 600 words in one page of big, bold print signed by buyer and seller. The regulatory savings should be passed on to the consumer in lower charges. It would be similar to a key facts document for mortgages.”
The report says: “State provision of social care does not encourage responsibility nor is it sustainable in the long-term. Instead we must argue that planning for potential care needs is every bit as important as planning for a pension.
The Free Enterprise Group includes Treasury select committee members Jesse Norman, David Ruffley and Andrea Leadsom (pictured), as well as Harriett Baldwin, Therese Coffey, Kwasi Kwarteng, Chris Skidmore and Elizabeth Truss.