News in brief

Improving customer information

Finance industry efforts to produce better quality disclosure information for customers have received recognition from the FSA. The regulator has revealed that more than two-thirds of the financial services Key Features Documents (KFDs) it has reviewed have shown significant improvements in quality.

Firms must give KFDs to consumers before they buy a packaged product. All KFDs must include key headings outlining the product, its aims, risks, general questions and answers and charges. The FSA first reviewed the standard of KFDs in September 2007 and found only 15 per cent were effective.