That’s because the UK’s Financial Services Authority (FSA) wants to update information that investors now get with a concise, jargon-free document called Key Facts, according to a Dow Jones report. The FSA said it wants consumers to find it easier to identify, understand, and compare key information before buying investment products.
The cover will also feature the FSA logo with a message highlighting to consumers that the document contains information that the regulator requires firms to provide to them, the FSA said.
Inside Key Facts, there will be a ‘Quick Guide’ highlighting the most important factors that consumers should think about before buying and ‘Frequently Asked Questions’ will give the main terms and conditions and other information in plain, jargon-free language. There will also be clear signposting showing consumers where else to look for further detail, according to the FSA.
The way costs and charges are presented will be simplified. Consumers will get a single example (in many cases, based on their own personal details) that shows how charges can affect the growth of the product. The example will also explain how they can use the figures to compare costs and shop around.
The FSA is proposing to ease the burden on the industry by phasing in Key Facts over a period of three years: ISAs, unit trusts and all pension products will have to comply within a year; savings and mortgage endowments within two years; and all other products within three years.