At present complaints about products bought from firms covered by the MCCB and GISC are dealt with through independent arrangements set up by those bodies. After regulation comes into effect, complaints about products will be dealt with by the Financial Services Authority (FSA).
Financial Secretary Ruth Kelly said:
"These arrangements will benefit consumers by providing a seamless transition to regulation - with no gap in consumer protection, and provide certainty for the industry. The arrangements were overwhelmingly supported by respondents to the consultation."
FSA regulation of mortgage business will be implemented with effect from 31 October 2004, and FSA regulation of general insurance from 14 January 2005.
