The Financial Services Consumer Panel in the UK would like to see financial services products that are straightforward, easily understood and do what they say they will do. It notes that today most products are extremely complex. The Panel commissioned an independent report to investigate the likely nature and characteristics of products that produce a straightforward and expected outcome. The research sets out what criteria classes of products would have to satisfy in order to be a “straightforward outcome” product, what products would qualify and also discusses what distribution channels would be used and how such products would be established, maintained and policed. It also sets out a number of issues from the analysis that need to be addressed such as whether guidance or advice is still required with certain products in order for consumers to choose the outcome most suited to their needs and how straightforward products could incorporate investment risk, if at all. Canadian investors also are in need of straightforward, easily understood products. Regulators in Canada should also address this for the benefit of financial consumers.
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