The findings highlight the issues faced by providers and advisers when it comes to financial engagement and what caveat emptor means in reality for half the British population.
The findings give a clear insight into what changes need to be implemented when it comes to product literature which might result in a more informed public, these include:
-->· A maximum document length of two and a quarter pages of A4 - shown to be the average number of pages people thought it fair to be expected to read in order to understand the product they had just purchased.
-->· Reading time should not exceed 25 minutes - shown to be the average length of time people are prepared to spend reading product literature.
The research also sought to establish why people were reluctant to ask for clarification when they struggled to understand product documents and terms and conditions, the results revealed the following for the respondents who had either not read or understood the accompanying product literature:
-->· 22% said it didn't seem important
-->· 16% said it wouldn't matter how many times it was explained as they simply can't get their heads around financial products
-->· 14% didn't want to appear ill informed
-->· 13% didn't feel they could ask/ the person advising them wasn't approachable
Part of the problem is the way the information is presented the findings show, the top five things that are likely to put people off reading financial documents are:
-->1. Overall length
-->2. Dry nature of language
-->3. Density of text
-->4. Use of non-committal 'weasel' words
-->5. Complexity of costing structures
Brandspeak director Jeremy Braune says of the findings: "Providers, in their efforts to cover all the regulatory bases, generally bombard the end customer with product information, which rather than empowering them turns them right off. The question then is in doing so, are customers really being treated fairly?
"The gulf between what product literature is meant to achieve and what it actually does achieve throws up some serious issues for providers' and advisers' TCF provisions: What does treating customers fairly mean in practice when the starting point of the interaction is disinterest, a reluctance to take responsibility for decisions and a lack of even basic understanding on one side?
"Based on what this research exposes we would argue the very first step to ensure customers are genuinely treated fairly is for the regulator to acknowledge that half the UK's adult population really struggles to get to get to grips with even basic product information as it is currently presented. And for providers it means working back from what the average customer realistically is prepared to digest and produce product literature that will actually get read - no mean feat!"
