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. "

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A full list of Panel news releases, publications and consultation responses can viewed at the Financial Services Consumer Panel website at: www.fs-cp.org.uk.

1. The House of Commons Treasury Committee Report - "Restoring confidence in long-term savings: Endowment Mortgages" (HC 394) is published on 11 March 2004.

2. The Financial Services Authority (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. The FSA must consider its representations and, if it disagrees with a view expressed or proposal made in the representation, it must give the Panel a statement in writing of its reasons for disagreeing.

3. 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.

4. 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.

5. There are currently thirteen members of the Panel as listed below (for further information on individual members, see the Panel's Web site at www.fs-cp.org.uk):-