The Government has confirmed that it will develop a new range of “simple products”, with the first consultation paper due to be published by the end of this year.
Speaking at the first Consumer Financial Education Body conference in Cambridge today, Financial Secretary to the Treasury Mark Hoban said the products will be developed in conjunction with consumer groups and the industry.
He said: “Simple products will help everyone to make better choices, and we particularly intend them to help encourage saving.
“I realise that there has been some controversy around simple products in the past and I want to reassure you that we are determined to avoid making the same mistakes as the last Government.
“So we will work closely with representatives from across consumer groups and industry to ensure that the products developed are viable for industry and attractive to consumers.”
Hoban said the Government will publish the first high level consultation on simple products by the end of this year, adding that officials will be working closely with interested parties in the run up to the consultation.
He said: “As well as developing simple products, we want to improve existing products that work well. The main savings product the Government has in place is Isas and over 17 million people now hold cash Isas. We want to make sure that Isas are as simple, transparent, competitive and flexible as possible.”
Hoban said there will be personalised interest rate information on cash Isa statements by early 2012 at the latest and providers will have to complete transfers within 15 working days from the end of this year.