Financial Products (Quality Standards)

HC Deb 05 December 2001 vol 376 cc324-5W

Mr. Cousins

To ask the Chancellor of the Exchequer what steps he plans to take to define quality standards for retail financial products. [20207]

Ruth Kelly

The Government have already introduced benchmark standards for Individual Savings Accounts and mortgages. These standards apply to charges, access and terms, and are known as CAT standards.

In response to proposals in the March 2000 report of the Banking Review led by Don Cruickshank, the Treasury consulted on possible new CAT standards for credit cards and basic bank accounts earlier this year.

The consultation document, "Standards for retail financial products", explored the case for such standards in detail.

The Government are considering the many responses that were received.

In the case of stakeholder pensions the Government require provider companies to comply with a set of minimum standards, which have similar aims in seeking to offer decent value to consumers.