The Government has called on financial services providers to offer consumers simple products to make banking and saving easier to understand.

The Sergeant Review of Simple Financial Products, released yesterday (2 August) by the Treasury, is part of government efforts to rebuild trust between consumers and the financial services industry. 

Easy access savings accounts, 30-day notice savings accounts and life cover are among the products in line for simplification. The Review also proposes a ban on temporary bonus savings rates – many savers unaware that these headline rates are temporary. 

The Review also calls for the introduction of a kitemark to help consumers identify this range of simple, easy to understand financial services products.  

Mark Hoban MP, financial secretary to the Treasury who led the review says: “Consumers need to know what they are buying, they need to have confidence that the products they are buying do what they say on the tin. People need to be able to compare like for like.” 

“This is not just for the financially illiterate but also for Middle England,” he says. 

The Review is open to consultation until October. A final report will be published in February 2013 and initial products could be available from early next year. 

Posted by

Smarayda Christoforou