The Financial Services Consumer Panel welcomed today's Treasury Committee Report on endowment mortgages. The Report recognises many of the issues which the Panel has been concerned about for some time, and highlights some key areas where action needs to be taken.

The Consumer Panel agrees with the Committee that there needs to be cultural change within the financial services industry to avoid similar misselling problems in the future. The Committee's suggestion that this will require a fundamental change in the current system of commission based fees provides a practical and stimulating contribution to the debate about treating customers fairly. The emphasis in the report that firms should communicate better with consumers and deal more fairly with complaints is also welcomed by the Consumer Panel.

The Consumer Panel also welcomes the Committee's recognition of the "failure of anyone to take responsibility for providing simple, commonsense independent advice". It is pleased that the Committee recognises the Panel's call not just for information, but for unbiased help in making decisions. So the Panel fully endorses the Committee's call for a mechanism to deliver low cost or free generic advice to consumers and sees this as an integral part of the Financial Capability strategy, which it looks forward to discussing further with the FSA.

The Panel also looks forward to further discussions with the FSA on how it continues to press firms to deal appropriately with consumers and their complaints, and its role in helping consumers address their shortfall and achieve redress where appropriate.

Ann Foster, Chairman of the Panel said:

"The financial services industry has much to learn from this Report. It is yet another call for the interests of consumers to be put at the heart of their business. The industry should respond to this if they wish to restore consumer confidence in their industry. "