In its continuing efforts to simplify the world of finance, the industry regulator, the Financial Services Authority has suggested further change.
Currently, when you buy a financial product you are given a 'key features document' that sets out the main points of what you are buying. The FSA believe that these documents are not simple enough and have suggested their removal and replacement with 'key fact sheets', which also include performance information over 5 and 10 years. There are concerns in the industry that these timescales are not realistic and consumers may rely on them when making a decision whether or not to invest.
There is also the idea to illustrate the effect that charges have on any returns received. This will be shown as a percentage but would be much easier shown in monetary terms. The key fact sheets will be uniform in design, regardless of the product they describe.
Our view:
If you are unsure of any financial product you are about to buy, seek advice. Any mistakes could be costly.
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