FSA proposes Quick Guide to retail investments

Pleased with the response to its Key Facts document model for mortgages and general insurance, the FSA now proposes a Quick Guide to retail investment products. The stand alone document, which it is envisaged will be no longer than two pages, would appear at the top of any marketing material. Badged with the Key Facts logo and featuring a ‘regulatory message’, it would include a table of numbered questions and bulleted answers. The questions set out in CP05/12 are: 1) What is a [product name]? 2) Who is it right for? 3) What are the benefits? 4) What are the risks? 5) What is my commitment? 6) What will I get back? 7) Are there any guarantees? 8) How flexible is it? 9) What are the charges for? 10) What do I do now? In order to avoid duplication, the Quick Guide would replace the existing Key Features document for retail investment products. The FSA will examine where to include the residual information, for example on charges, as part of its consultation on the wider disclosure package for investment products in March 2006.