Government review recommends “simple financial products” and a new kitemark

A new range of easy to understand financial products should be set up immediately to help people find their way through the current jungle, according to a Government review.

The first range of “simple financial products” should include easy access and 30 day term savings accounts, and life insurance.  The recommendations also include the setting up of a kitemarking system for simple products, and the development of a simple income replacement product for loss of income due to sickness.

The recommendations come from an independent steering group set up by the Treasury and chaired by Carol Sergeant (formerly of Lloyds Banking Group).  There will now be a period of consultation on the report, with the final version due to be published in February 2013.

For more information, see:   http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9445552/Treasury-to-kitemark-simple-financial-products.html

and

http://www.hm-treasury.gov.uk/fin_consumer_simple_products.htm