Several trade bodies have approved the ‘simple product’ framework created by the Sergeant Review from the British Standards Institution.
The Association of British Insurers, British Bankers’ Association and the Building Societies Association have today (4 December) rubber stamped the accreditation, which is designed to encourage the generation of simpler products to engage mainstream consumers.
The Sergeant Review made the case for a suite of financial services products with standardised features that are easy to understand and transparent, developing a kitemark for such simple products such as consumer cash accounts and insurance policies.
The framework was approved independently by Trading Standards Institute’s consumer codes approval scheme board, giving customers a clear indication that products sold with the TSI Approved Code logo can be trusted.
A steering board - including the Citizens Advice Bureau, Financial Services Consumer Panel and the Money Advice Service - will oversee the framework and accreditation of a suite of simple products.
However, the Financial Conduct Authority cast doubt on this initiative as a year ago it stated it may not result in “tangible changes for consumers”.
Product providers will be able to apply for accreditation in the first quarter 2015.
In August Barclays launched a fixed-term life insurance product that it stated was the first to receive the ‘simple’ kitemark.
At the time, chair of the Simple Products Steering Group and Carol Sergeant, author of the review, said: “Just a year on from the conclusions of our review I’m delighted to see the first simple financial product independently certified and our recommendations become a reality, and there are several more simple financial products in the pipeline.”
Today’s approval by several trade bodies should widen the scope for other insurers and banks to develop products that tick the ‘simple’ boxes.
Peter Tyler, policy director at the BBA, commented that customers expect financial products that do exactly what they say on the tin.
“A suite of simple products will make it easier than ever before to understand whether a saving or insurance product is right for you. TSI accreditation of our simple products framework provides independent assurance that simple products are fit for purpose.”
Brian Morris, head of savings policy at the BSA, added: “The approval of the simple financial product framework is welcome and the TSI approved code logo will act as a helpful indicator to those looking for simple, but effective financial products.”
peter.walker@ft.com
