Speaking at the Council of Mortgage Lenders conference in London today, FSA managing director of retail services Clive Briault revealed the regulator has started to review some examples of Key Facts documents.
He said this is to assess how its new rules are being applied in practice, and said the initial focus has been on the major mortgage lenders.
Briault said: “The layout and clarity of most of these documents is good, and we welcome the efforts that these lenders have made. However, and as has been the subject of some discussion in the market, the length of these documents varies dramatically, from just over three pages to double figures.
“Of course, more complex products require greater explanation and thus a longer Key Facts document. But not all of the longer documents apply to more complex products. And the problem with length is that it discourages consumers from reading the document in the first place and tends to obscure the key elements of information within unnecessary detail. This is an area where “less is more” and we are discussing with some firms how they can achieve this.”