Consumers barely understand with-profits but still buy

The Financial Services has discovered most people who take out with-profits investments have a basic understanding of how the products work but still buy without reading the product information that is provided. A survey commissioned by the FSA - as part of the with-profits review launched in February last year - reveals that although some aspects of with-profits, such as the long-term nature of the product and the existence of penalties on early surrender, are better understood, the knowledge of key features such as bonuses, guarantees and the application of smoothing is generally poor....