Simple Financial Products (Consultation)

Tuesday 14th December 2010 Written Statements

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

Today the Government are publishing a consultation on developing a new category of simple financial products. The consultation sets out the Government’s proposals in this area, and provides an opportunity for interested parties to respond. Copies of the document are available on the HM Treasury website.

The Government are committed to helping consumers to take responsibility for their finances and are already taking forward the coalition commitment to develop Britain’s first free national financial advice service. This consultation proposes a new regime of simple products that will complement current work on advice and education, giving consumers a simple alternative when they reach the market.

These products will ensure that people understand the products they need, help people make better choices and encourage competition in the market. The Government expect that these proposals will be taken forward on a voluntary basis by the industry, in collaboration with consumer representatives, and that once introduced, will have a positive impact on consumer engagement in the market.

Copies of the consultation document have been placed in the Libraries of both Houses.