Consumer Panel calls on financial services industry to agree common standards of product design

14 October 2009

In a speech to the Building Societies Association today, Adam Phillips, Chairman of the Financial Services Consumer Panel, called on the financial services industry to develop product design criteria to improve consumer confidence in the industry.

Adam Phillips, Chairman of the Financial Services Consumer Panel, said:

“We need to find a way to regulate product design which will provide better products that can be described fairly simply and which do ‘what it says on the tin’. 

“Consumer confidence would be hugely improved if there was a range of financial products from different providers that were presented in a way which is simple and honest, with prices that can be easily compared with other products of the same type.  The industry should consider developing design criteria for particular types of product which would guide ‘good’ product innovation and restrict innovation that conceals cost or risk in the pursuit of providing an apparently better price or higher rate of return. Doing this would be a major step towards improving consumer confidence in financial services.”

 

Notes to editors

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives.  The Consumer Panel has statutory status.  

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. What we're doing for consumers explains more about the work the Panel is doing.

3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.

4. There are currently ten members of the Panel as listed below (for further information on individual members, see Who is on the panel)
   

   Adam Phillips (Chairman)
   Kay Blair (Vice Chairman)
   Michael Chapman
   Stephen Crampton
   Mike Dailly
   Caroline Gardner
   Tony Hetherington

   Nick Lord
   Bill Martin
   David Metz
   Lindsey Rogerson
   Carol Stewart
   Claire Whyley