Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 23rd of May 2018
June 6, 2011

FSA proposals on product descriptions

by Gill Montia

Story link: FSA proposals on product descriptions

A rise in demand for financial products for the risk adverse has led the Financial Services Authority (FSA) to review the market and draw up new rules on product descriptions.

The regulator’s latest quarterly consultation paper proposes that firms using terms such as “guaranteed”, “protected” or “secure” should include in their promotional material explanations of what these terms mean for the consumer.

According to the FSA, the industry has developed a “growing and innovative” market for products (including structured products) described in such terms.

However, some providers are using the terms without any “clear and adequate justification”, leaving consumers potentially misunderstanding what is on offer.

Comments on the proposals should reach the FSA by 6th August.

 

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