Advice should be jargon free - 1st Exchange

Technology provider 1st Exchange has called for the industry to use plain language to ensure product information is jargon free and more accessible to consumers.

It follows research results which show that IFAs see protection policies as the least complex products but say more financial education and less jargon will increase consumer access.

The survey from 1st Exchange revealed that 45% of polled advisers saw these factors as the biggest barrier for consumers.

A third (34%) of IFAs indicated simpler product structures were required, while the remaining 21% said it would take better tax incentives from the Government to make financial services' products more appealing.

When questioning advisers about the most inaccessible products on today's market, IFAs were split down the middle with 47% indicating that both pensions and alternative investments were equally as intimidating to the end consumer.

However, in good news for the industry, only 6% feeling protection products were the most complex.

Paul Yates, strategy and business development director for 1st Exchange, believes the results show just how important consumer education and product transparency are to making financial products more accessible.

"A lack of understanding among consumers, coupled with product complexity, will ultimately act as a deterrent at a time when the need for people to start planning for their financial future is becoming more urgent than ever," she said.

"We need to work together as an industry to ensure that product information is jargon free and accessible to those who need it."