Product providers could be forced by the FSA to put the risk warnings traditionally hidden in the small print at the heart of financial product advertisements.
The FSA says it is looking at the issue of risk warnings as part of its broader investigation into disclosure.
Trade bodies, including the AITC, ABI and the LIA, believe the regulator plans to increase the prominence of risk warnings in a bid to increase consumers' understanding of investment products.
AITC technical director Ian Sayers says: “The FSA will be lik ely to require providers to move the warnings away from the small print and into the main body of the text.”
FSA spokeswoman Jackie Blyth says: “This will be part of the look into disclosure that we began two weeks ago. Information about financial products should be as simple as possible. There are questions about how much the consumer understands the risk warnings.”
Global Asset Management director Martin Harrison says: “The Government is supposed to be encouraging people to save but a move like this is more likely to put them off.”