The news was announced by David Kenmir, managing director of the regulatory services business unit for the FSA, at the Complinet Annual Compliance Conference.
During his speech, which focused on the FSA’s priorities for 2005, Kenmir indicated that the regulator was intent on expanding the KFI concept across other financial products.
He also held out the possibility that the FSA would start deleting ‘pointless rules’ so as to ease the cost of compliance. Commenting on the needs of small firms Kenmir said: “We need to up our game and be more transparent so small firms can know what we want.”
Tony Jones, managing director of Pink Home Loans, commented: “I think it is a great idea, though I hope the FSA will learn from some of the painful lessons which the mortgage industry experienced.
“Certainly some of the more complex financial products out there could do with a simple explanation of the potential risks. But if it allows over-long KFIs it will defeat the whole point of the process.
“ I mean a nine-page key facts document is a contradiction in itself.” Bill Warren, director of The Complete Network, agreed with Jones. He said: “I think the concept of KFIs can be copied to most financial products, though they should only contain the key facts.”
Kenmir also revealed that the regulator would be relaunching its website to make it more user-friendly.
