Calls for comparison sites to set up code of practice

The Resolution Foundation has called on financial comparison websites to establish for themselves a code of practice that would enable them to offer a better service to British consumers.

Research by the foundation found that close to 45 per cent of adults in the UK have used a financial comparison website, which it suggests highlights the importance of ensuring they offer a transparent service.

Many consumers make use of comparison sites in an effort to avoid debt management disaster, but in some cases these sites “fail to explain the commercial relationships they have with product providers”, according to the foundation.

Clive Cowdery, chairman of the Resolution Foundation, said: “Comparison sites are valuable in making informed financial decisions – but many sites are undermined by a lack of transparency about their commercial relationships.

“A voluntary code of practice would address this and encourage a growing market, without the need for further regulation.”

The Resolution Foundation is keen to see a generic financial advisory service made available in the UK to help British consumers manage their money more effectively.