FSA chairman Howard Davies has hinted that Key Features Documents could be subject to a complete redesign.
Speaking at the foreign banks & securities houses association conference in London yesterday, Davies said that KFDs were not providing a sufficient level of disclosure for investors.
He said: "There is ample evidence that the disclosure requirements we place on providers and intermediaries are not delivering information to the consumer which she can readily understand and use to make an informed decision. And that is even though the key features documents were carefully designed to deliver comprehensible and easy to prepare information.
"Sadly, the research shows that they do not hit the spot. That is more than ever true in the with-profits area, where product complexity is a particular problem. So, in parallel with polarisation reforms, we need to work on the disclosure arrangements at the same time."