FSAs first Comparative Table goes live

This is the first time a financial regulator has brought together - in one place authoritative, easy-to-understand, comparative information based on a series of robust and objective indicators. Consumers will be able to compare products on a like-with-like basis and draw up a shortlist that can then be explored in more detail, either by consulting a financial adviser or contacting the product provider.

Consumers using the FSAs Unit Trust & OEIC ISA Table will be able to make comparisons between more than 100 UK Growth funds using key indicators such as:

• The effect of charges and deductions on the value of a fund over a 10 or 25 year period
• Where it is available through IFAs, tied advisers or direct from the provider
• The number of other funds available in the ISA
• The impact of charges if the ISA is cancelled in the first three years
• Whether it carries a CAT standard

A series of click-through options provide further details about individual products, including links to the providers own websites. There are also useful links to other sources of information, such as industry bodies. The tables do not represent FSA best buys or recommendations. All providers have been asked to provide data and more than 80 are featured on the ISA table. Products are not ranked or sorted in any way, they are simply listed alphabetically. However, consumers can use various options such as tracker or non-tracker, maxi or mini to filter the products using their own criteria to create a shortlist and can create their own rankings.

The move to develop the tables was first announced by the Chancellor in March 1999. Today, Ruth Kelly, the Economic Secretary to the Treasury said:

The FSAs pioneering tables fill a critical information gap in financial services, providing consumers with an authoritative, independent overview of what is on offer. Enabling consumers to compare like-with-like should pave the way for a more transparent, competitive marketplace - a good thing for consumers and a good thing for the industry.

Howard Davies, FSA chairman, added:

The Comparative Tables shift the balance of power towards consumers by giving them easy access to objective and accurate data on a wide range of investment choices. They also provide access to facts that are normally hard to establish, such as the real impact of charges over the life of their investment. The Tables dont - and cant - put investment decisions on autopilot. Many consumers will still want and need advice. But they will help to inform and educate the investing public which is a key objective for the FSA.

The Table launched today shows that charges on an investment of 100 a month in an ISA over a 10 year period would come out at less than 400 for some of the cheaper funds compared with over 2,500 for the most expensive fund. Understandably, tracker funds tend towards the lower end of charges where as actively managed tend to be more expensive. This does not mean that the more expensive funds are not worth buying but that they will typically have to outperform the cheapest fund by more than 2% compound over 10 years simply to eliminate the effect of the higher charges.

Further tables will be rolled out over the coming weeks. On-line next will be a pensions table, including stakeholder pensions, to be followed by investment bonds, and savings and mortgage endowments.

Notes for editors

1. A Comparative Tables photograph of Howard Davies, FSA Chairman is available from www.newscast.co.uk search under FSA.

2. An OEIC Open Ended Investment Company - works in a similar way to a Unit Trust. However, an OEIC investor will own shares in the company rather units as in unit trust.

3. The FSA Comparative Tables are updated on a daily basis by The Research Department. CMG Admiral provides the technical solutions.

4. Information from the FSA Comparative Tables may be downloaded for printing or publishing purposes or into an excel spreadsheet. However there are terms and conditions attached to doing so please check the website for details.

5. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

6. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.