The government has created a steering group to develop more straightforward savings and protection products following a consultation on simple financial products.Mark Hoban, Financial Secretary to the Treasury says the range of products, which could also include investment products, will “help consumers navigate the financial services market”.
The group will be chaired by former chief risk officer at Lloyds Banking, Group Carol Sergeant and will include representatives from government, industry, and trade and consumer bodies.
It will consider how to bring simple products to market, including how simple products are structured and marketed to ensure that consumers get the best deal.
Hoban says straightforward products can help consumers make decisions that will help them save for the first time and plan for a secure financial future.
He says: “I am delighted that Carol Sergeant has agreed to chair a steering group to develop the thinking on simple products further and to work with industry and consumer groups to bring them to fruition.”
Sergeant adds: “Simple, easy to understand products need to be a viable commercial proposition for the industry, while offering consumers a straightforward benchmark that gives them the confidence to make good decisions in an often bewilderingly complicated market place.
“Getting this right will require the involvement of consumer groups, financial regulators and the Money Advice Service, as well as the savings, investment and protection industries. I look forward to working with all key stakeholders on this.”
The group will report back to Hoban in July 2012.