View more on these topics

Ruth Kelly statement in full

Economic secretary Ruth Kelly has set out the reasons for statutory regulation of mortgage and general insurance intermediaries and advice.

"Buying a mortgage is the biggest financial decision of most people&#39s lives, they need to get it right and high quality understandable advice is crucial. Regulation will ensure a high standard of advice is available across the board to the large number of people, 1.2 m in 2000, who take out mortgages every year. In the rare and unfortunate cases where things go wrong the Financial Ombudsman will be the single body for handling customer complaints.

"DeAnne&#39s review highlighted areas where improvements should be made to benefit banking customers. There has been a very constructive response with the majority of the recommendations being accepted by industry. The measures being taken forward will benefit customers, for example through making account switching easier and stimulating competition in personal banking.

"The Julius Review group argued that mortgage advice should be regulated, echoing the sentiments of many consumer groups and industry. We have listened to these views and after reviewing the policy believe regulation will bring benefits to both consumers and businesses.

"Many of the 12,500 UK mortgage brokers also sell general insurance. In order to maintain a consistent and streamlined approach, the sale of general insurance products will be regulated by the FSA. Brokers who deal in two or more lines of regulated business will deal with a single regulator, not several, and will be able to compete in European markets. Additionally the Government will look at insurance sold as part of a package with another product – for example, travel or extended warranty — to consider the implications of the new regime for them.

"Today&#39s measures will benefit industry by simplifying and streamlining regulation. The watchword in developing the new frameworks will be proportionality. We and the FSA will be working closely with the industry and others to design a regime that understands the market, and is targeted precisely at maximising benefit to the consumer, and not loading industry and ultimately the consumer with unnecessary costs."


Punitive increase in charges

An open letter to DBS Financial Management Having looked at the new cost increases for the services that DBS provides members, I am appalled for two reasons.First, you would think that a new regulator would strive to reduce our costs (given that they expect us to work within 1 per cent) but from the evidence […]

L&G offers second round of protection

Legal & General is building on the theme of capital protection with the introduction of the second tranche of its protected portfolio. Protected portfolio II has a five and a half year term, which is six months longer than the previous edition. It is linked to a portfolio of 30 stocks that are taken from […]

Picturing 2001

In July, Bank of England economist DeAnne Julius&#39 published her long-awaited report into UK banking codes. The report criticised the Treasury for failing to regulate mortgage advice and called for the mortgage code to be strengthened. To the industry&#39s surprise, the Treasury has since handed the FSA responsibility for the regulation of mortgage advice and […]

N3 will never happen says FSA

N3, the date set for August 2001 when the FSA was due to regulate mortgage lending and administration, will no longer happen according to the FSA.Following the Treasury&#39s announcement yesterday that mortgage advice and general insurance broking are to be regulated by the FSA from 2004 N3 has been cancelled.The FSA is now consulting on […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm