Generic illustrations will replace personalised illustrations in the FSA's forthcoming key facts point of sales documentation except for pen- sions which must still provide an example of what each individual can expect to get back.
A draft consultation paper seen by Money Marketing shows the FSA wants to introduce a streamlined and standardised approach to illustrations. It will rely on links to its own website and standardised leaflets for further information.
Speaking at last week's Raising Standards conference, FSA managing director John Tiner said the new document would be less of a marketing document but also acknowledged the danger that illustrations may put investors off saving.
Currently, key features documents for all regulated products have to include personalised illustrations. But the new consultation paper shows that the FSA has concluded that the cost of including these in the new key facts would be prohibitive.
The consultation paper is to be issued later this week.
Tiner said: “We will move away from personalised illustrations to single standardised ones with links to our website for comparative tables. It will be more official and less of a marketing document.”
Scottish Life head of communications Alasdair Buchanan says: “It seems bizarre to have tailored calculations for pensions and not for other products.”
Franklins Financial Services partner Neil Franklin says: “I am wary about what is in a lot of Key Features Documents so this won't do any harm. But people still won't read them and the FSA is in cloud cuckoo land if it thinks its website will help.”