Mortgage regulation: getting better for consumers

27 September

In response to today's publication of research by the Financial Services Authority on the effectiveness of mortgage regulation for consumers since the FSA took over, John Howard, Chairman of the Financial Services Consumer Panel said:

"It is good news to see that consumers are using the new documents that the FSA has introduced to help choose the best mortgage for them. It is imperative that advisers comply with the rules and give these to consumers at the right time - FSA mystery shopping research in July 2006 showed that for lifetime mortgages, approximately one third of shoppers did not receive an Initial Disclosure Document (IDD).

Also, today's research is more evidence that new regulation from Europe1 must not be allowed to stop the requirement for information to be given to consumers such as the Initial Disclosure Document (IDD) and Key Facts (KFIs)."

1 MIFID (The Markets in Financial Instruments Directive) has been described as intending to ensure that consumers benefit from the same level of protection whether they choose a foreign investment services provider or a domestic one, and this may affect the additional levels of protection afforded consumers in the UK. Notes to editors

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.
   

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on our website – www.fs-cp.org.uk.
   

3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media. There are currently thirteen members of the Panel as listed below (for further information on individual members, see the Panel's website).

John Howard (Chairman)
Adam Phillips (Vice Chairman)
Kay Blair
Stephen Crampton
Caroline Gardner
Harriet Hall
Tony Hetherington

Stephen Locke
Nick Lord
David Metz
Lindsey Rogerson
Paul Salvidge
Carol Stewart