The Government has reiterated its scepticism about the benefits of standardised risk summary boxes i...
The Government has reiterated its scepticism about the benefits of standardised risk summary boxes in product literature as part of its response to a report from MPs.
The boxes are a pet project of the House of Commons Treasury Select Committee chaired by John McFall and were a key feature in its report on restoring confidence in long-term savings published in the summer.
But in its response to the report, the Treasury has repeated its concerns about the practical difficulties of a summary risk rating, especially if the product's level of risk has the potential to change over time.
The idea will continue to be developed, however, with the FSA revealing in its response the convening of a working group that will explore further the feasibility of summary boxes and risk indicators with plans to report back to the Committee by the end of the year.
The IMA and ABI have also announced the establishment of a Financial Services Forum, another key recommendation in the report.