The City watchdog is to streamline the information consumers are given on financial products and make it easier to shop around.

The Financial Services Authority (FSA) wants firms selling pensions, savings and investment products to replace the information they give consumers with a jargon-free document setting out the basic facts.

Its proposed Key Facts document aims to make it easier for consumers to identify products which are suitable for them, as well as compare key information with products from different providers.

The document will include a "Frequently Asked Questions" section setting out the main terms and conditions of a product in plain English, as well as a "Quick Guide" highlighting important factors that people should consider before buying.

Under the proposals, the way costs and charges are presented will be also be simplified and consumers will get an example, often based on their personal details, showing how charges will affect the growth of their investment.

The FSA estimates it will cost providers about £110 million to make the changes and it is estimated the life insurance industry will spend about £66 million changing the way it gives information on its charges.