Comments for CashQuestions Blog http://www.cashquestions.com/components/com_mojo A unique view of the world by the CashQuestions team Tue, 07 Sep 2010 13:17:02 +0000 http://wordpress.org/?v=2.0 Comment on ‘Caveat venditor’ when Osborne’s new-style FSA takes shape by Mark Dowling http://www.cashquestions.com/component/option,com_mojo/Itemid,365/p,49/#comment-4 Mon, 27 Jul 2009 08:59:36 +0000 http://www.cashquestions.com/component/option,com_mojo/Itemid,365/p,49/#comment-4 What is interesting is that the same experiment which is being suggested for the US has already been tried in the UK - and failed. I'm thinking of the "CAT marks" for ISAs which died an ignominious death after being pretty much ignored by consumers. Your point is well made - it's all very well to require providers to sell "dumbed down" products, but those products are not necessarily the best value for consumers for many reasons. If a requirement to offer them turns into a requirement NOT to offer anything else, then consumer choice is stifled and the scope for competition between providers on anything other than headline rate is removed. True, this is simple for consumers, but it's not going to give them everything they might want or need. What is interesting is that the same experiment which is being suggested for the US has already been tried in the UK - and failed. I’m thinking of the “CAT marks” for ISAs which died an ignominious death after being pretty much ignored by consumers.

Your point is well made - it’s all very well to require providers to sell “dumbed down” products, but those products are not necessarily the best value for consumers for many reasons. If a requirement to offer them turns into a requirement NOT to offer anything else, then consumer choice is stifled and the scope for competition between providers on anything other than headline rate is removed. True, this is simple for consumers, but it’s not going to give them everything they might want or need.

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