Financial Services Authority (FSA) regulation of mortgage business will be implemented with effect from 31 October 2004 and of the selling of general insurance from 14 January 2005.
At present complaints about such products bought from firms who have signed up to the Mortgage Code Compliance Board (MCCB) or the General Insurance Standards Council (GISC), are dealt with by independent arrangements set up by those bodies. After regulation comes into effect, complaints about products bought in the regulated market will be dealt with by the FSA.
The consultation paper, ‘Mortgages and General Insurance Regulation: Transitioning Complaints’, seeks views on whether the Financial Ombudsman Service (FOS) should be given powers to deal with complaints about products bought from MCCB or GISC members before FSA regulation starts but which arise after it comes into force.
Announcing the consultation, Financial Secretary Ruth Kelly said :
“Making transitional provision for these complaints would benefit consumers. However this has to be weighed up against the possibility of additional costs for firms, and any differences in approach and scope between the FOS and the current self-regulatory schemes. The consultation paper will give all interested parties a chance to set out their views on how best to proceed.”
