The FCA could run a competition to design the most effective disclosure documents

Some of the signs are good at the Financial Conduct Authority. It is trying to sort out its intelligence gathering. It may now be trying to sort out disclosure and the huge amount of paper that advisers have to give consumers which they don’t read. There’s a long way to go, but this could get very interesting. The FCA should, of course, also ask advisers what they think, because good advisers probably know instinctively what is getting through to clients and what is not. In fact, though academic papers are  a very significant step – it’s about time some intellectual rigour was brought back into regulation – we wonder if the FCA might not run a competition for the best designed, most effective disclosure documents. They could test them on consumers to find out which ones work for different product areas and types of advice. It couldn’t do any harm and it would keep the lawyers out of the process which probably wouldn’t hurt either.