Banks issued new guidance on product offerings

2 November 2011

Banks in the UK are set to be issued with new guidance on how to avoid the problems seen with payment protection insurance (PPI) in future products.

The Financial Services Authority (FSA) and the Office of Fair Trading (OFT) announced yesterday (1 November) that they are to join forces in order to create fresh rules for financiers to follow as they begin to develop new features on packages like mortgages.

Under these proposed regulations, lenders will be required to make sure that all facets of products they are offering are well-suited to the individual needs of each customer.

Meanwhile, it will be made compulsory for any protection offered with a deal to have proper pricing structures.

Margaret Cole - managing director of the FSA, which recently produced fresh guidance on the handling of packaged bank accounts - said: "Firms must learn the lessons of the past and make sure they have consumers' needs at the heart of new product development."

By Asim Shah

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