Mark Hoban,
Financial Secretary to the Treasury, today announced the creation
of a new steering group tasked with devising a suite of ‘simple’
financial products that will help consumers navigate the financial
services market. The steering group will be chaired by Carol
Sergeant (former Chief Risk Officer, Lloyds Banking Group) and
include representatives from Government, industry, and trade and
consumer bodies.
The group will report back to Mark Hoban by July 2012 setting out
how to bring simple products to market, including how simple
products are structured and marketed to ensure that consumers get
the best deal. Responses to a Government consultation on simple
products, published today, suggest that the group should initially
focus on simple deposit savings and protection insurance products.
Other areas likely to be considered include investment products to
help consumers save for the long-term.
Mr Hoban commented:
"Simple financial products have the potential to help
many consumers make decisions that will help them save for the
first time and plan for a secure financial future for them and
their families. 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.”
Carol Sergeant said:
"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.”
Notes for Editors
1. Carol Sergeant has held a range of senior positions in both
the public and private sector, including as Head of Major Bank’s
Supervision at the Bank of England, Managing Director at the
Financial Services Authority and Chief Risk Officer at Lloyds
Banking Group.
2. The Government announced in July 2010 that
it wanted to see a new range of simple financial products
launched. These would help people take responsibility for their
finances and to make better choices.
3. ‘Simple Financial
Products: a consultation’ was published on 14 December 2010 and
closed 25 March 2011. The consultation set out the Government’s
initial suggestions for how a new range of simple products could
be developed. The Government is today publishing a summary of
responses to the consultation, which can be found here: http://www.hm-treasury.gov.uk/consult_simple_financial_products.htm
4. The Government wants to ensure that all consumers are able
to take more responsibility for their financial future. A survey
for the FSA revealed 52% of people find it “too complicated” to
compare one product against another and 46% “don’t know” if they
are getting a good deal on a financial product.
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