Glossary: Key features document
The key features document (KFD) gives consumers the main points about any financial product or service they are considering purchasing without having to resort to the fine print. The KFD must include key headings outlining the product, its features, benefits, aims, risks and the requirements the consumer has to meet as well as a Q&A section. Although no two KFDs are exactly alike (each product requires a bespoke KFD), the FSA issues guidelines for how financial services companies should present the KFD to prospective customers.
The Financial Services Authority is an independent non-governmental body, given a wide range of rule-making, investigatory and enforcement powers in order to meet its four statutory objectives: market confidence (maintaining confidence in the UK financial system), financial stability, consumer protection and the reduction of financial crime. The FSA receives no government funding and is funded entirely by the firms it regulates, but is accountable to the Treasury and, ultimately, parliament.