Today is the last chance for finance professionals to tell the FCA how the industry can ditch the jargon as it seeks to combat poor communication.
The regulator proposed “innovative” ways for companies to get their messages across to the public when it launched a consultation earlier this year. This will end tomorrow.

Examples put forward by the FCA included a series of comics produced by the Australian Securities and Investment Commission, as shown above, which was designed to educate consumers.

The regulator has called for companies to deliver information that is easy and clear for the average person to understand. It has challenged firms to consider alternative ways of engaging and communicating about products and services, for example, by using videos, and infographics.

The FCA said its thematic work and market studies have previously revealed that the type of information consumers receive can “drive both poor and positive consumer outcomes” and therefore it was “essential that information empowers consumers to make informed decisions about products and services”.

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The FCA discussion paper called Smarter Consumer Communications stated: “In one example a comic seeks to communicate information about credit, mobile phones, loans and owning a car to younger people.

“While this comic is aimed at consumer education, it demonstrates an approach to communicating effectively with a specific demographic.”

The regulator spoke with other financial services regulators in countries such as Australia, the US, Sweden, Denmark and Norway, as well as UK regulators of other markets - for example Ofcom, Ofgem and Ofwat - to “understand the innovative practices and developments in these sectors”.

The FCA aimed to kick start a debate to encourage firms, consumer groups, and stakeholders to work together to deliver information to consumers in “smarter and more effective ways”.

FCA research has uncovered the view that the prescriptive nature of EU and domestic legislation leads firms to produce jargon-filled and lengthy disclosures that firms can do little to improve, officials said.

Christopher Woolard, director of strategy and competition at the FCA, said: “All too often customer communications are so technical that even the most astute consumer would struggle to understand the information.

“Communications play a fundamental role in helping consumers make decisions about the products and services they buy which is why it’s so important that we work with firms to get this right.”

The FCA gave a list of examples of what it called “smarter communications”.

These were:

• Communications using plain language, short format, bullet points and clear graphics

• Use of interactive apps to help consumers understand and manage their product

• The use of infographics to explain complex information and concepts to consumers in an engaging way

• Use of videos to help consumers engage with the essential terms and conditions of a product.