The FSA is to introduce a single simplified disclosure document to replace the payment menu and initial disclosure document.
It says this simplifies investment disclosure and gives flexibility to explain charging structures in more detail. The two- page document will be guidance rather than mandatory.
The document will be introduced in August and the menu and IDD will be phased out by August 2009.
Director of retail policy and themes Dan Waters says:”We wanted to make this as futureproof as we could. For example, if the RDR were to come out with some kind of guidance or rules around customer-agreed remuneration, you want a disclosure process that allows that to happen.”
SimplyBiz chairman Ken Davy says: “I think this is a great idea, a tremendous initiative from the FSA and should be of real benefit to consumers as well as advisers. Hopefully, it will also save a few forests.”