The CAT standard (Cost, Access and Terms standards) will be discontinued from 6 April 2005. The government originally put forward the CAT benchmarks to encourage confidence and people to invest by having standards for good value for money, transparent investment and mortgage products with no "small print".
Regrettably, despite its good intentions, it didn't work. Providers have not put many of these products forward to consumers, as there is not enough profit to make it worth their time, and customers need choice.
Our view
Just a waste of yet another rainforest as more literature hits the wastebasket!
In addition, another new style of "CAT" products are being introduced instead. Low cost ISAs, controlled risk savings and investment and Life Insurancec to run alongide Stakeholder pensions are being introduced.
These are known in the industry as the Sandler suite of products as they are again simple and low charged and come from a Treasury lead review of the finance industry by Mr Ron Sandler.