The UK Treasury is creating a new steering group to develop “simple” financial products, in a bid to help people take better care of their finances.
The steering group will be chaired by Carol Sergeant, former chief risk officer at Lloyds Banking Group, and will include representatives from the government, industry, and trade and consumer bodies. It will report back to Financial Secretary to the Treasury, Mark Hoban, by July 2012 setting out how to bring simple products to market, including how simple products should be structured and marketed to ensure that consumers get the best deal.
“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,” said Hoban.
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.” She added that the initiative will require the involvement of consumer groups, regulators and the industry.