‘Simple financial products will restore trust in banks’

The Treasury has proposed the introduction of a kitemark to identify a range of simple, easy to understand financial products in a bid to help rebuild consumer trust in banks.

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The Sergeant Review of Simple Financial Products, published today (2 August), suggests that a range of simple, easy to compare financial products should be introduced to help consumers make the right choices.

These would include an easy-access savings account, a 30-day notice savings account and a simple-term life insurance product that meet basic needs. A kitemark would help consumers identify these products.

An independent body to ensure standards are being met has also been proposed.

The report comes as the banking sector faces a fresh wave of distrust following the Barclays Libor-fixing scandal, major IT glitches at both Natwest and Nationwide and the ongoing issue of mis-sold payment protection insurance (PPI). LINKS

Similar measures have been proposed for the energy sector as part of a radical overhaul of the market to help consumers easily compare products and check the cheapest tariff offered by providers. It is hoped that the moves will restore trust in the sector.

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