104/03
22 September 2003
MORTGAGES AND GENERAL INSURANCE TRANSITIONAL PROVISION FOR COMPLAINTS
A consultation paper seeking views on who should deal with consumer complaints about mortgages and general insurance products bought before new protection for consumers comes into force was published by the Treasury today.
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 Codes Compliance Board (MCCB) or the General Insurance Standards Council (GISC), are dealt 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.”
NOTES FOR EDITORS
1. Chief Secretary Paul Boateng, announced in an official statement to Parliament on 5 June 2003 that the Government would publish an open consultation paper on making transitional provision for complaints.
2. The consultation document published today can be accessed on the Treasury website. Printed copies can be obtained from: Mark Baldwin, HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ (telephone : 020 7270 1362; fax : 020 7270 4694; email : mark.baldwin@hm-treasury.x.gsi.gov.uk.
3. Responses to the consultation, to be received by 30 November 2003, should be posted or e-mailed to Mark Baldwin at the same address.
4. Previously published documents relating to the regulation of mortgages and general insurance are also available on the Treasury website:
- Regulating Mortgages, consultation document: 28 February 2002 (Treasury press release 15/02)
- Summary of the response to the above consultation including details of Treasury decisions: 8 August 2002 (Treasury press release 79/02)
- Regulating Insurance Mediation, consultation document: 21 October 2002 (Treasury press release 109 /02)
- A summary of the responses to the above consultation including details of Treasury decisions: 5 June 2003 (Treasury press release 66/03)
- Statutory Instruments to bring mortgage business and the selling of general insurance into FSA regulation: 5 June 2003.
5. Media enquiries should be addressed to Simon Moyse at the Treasury press office on 020 7270 4420.
6. Non-media enquiries should be addressed to the Treasury Public Enquiry Unit on 020 7270 4558.
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