The group chaired by Carol Sergeant and tasked with making recommendations to Treasury on simple financial products has produced its final report. The report makes eight final recommendations covering the following themes:
- all simple financial products should comply with an agreed set of high-level principles, which cover product features, language, terms and conditions, pricing transparency, purchasing process, and regular information and product updates;
- simple financial products should use plain language, which is straightforward and consistent between products, and all key terms and conditions should be the same for each product;
- the first simple financial products will be easy-access, 30-day notice and regular savings accounts and a fixed-term life insurance product. A whole-of-life insurance product and a simple income replacement product should follow; and
- qualifying accredited products can bear a simple financial products badge.
Credit unions can also develop credit union specific simple financial products.
The report also proposes trade associations work both on products and with the British Standards Institute in relation to the badging and accreditation process. (Source: Sergeant Review of Simple Products Makes Recommendations)