Regulation By 2004
When you purchase a household or motor insurance policy or take out a mortgage; there are not the same sort of rules or regulations that are around for advice on say a pension or isa.
The Financial Services Authority (FSA), the single regulator for the UK Financial Services industry, has announced time scales for mortgage and general insurance regulation. Mortgage and general insurance advisers will become subject to FSA regulation by summer 2004.
Our View:
This is good news for consumers as these advisers will become subject to the same stringent regulations as other types of Financial Adviser. Regulation of the mortgage and general insurance areas can only increase the overall professionalism, expertise and quality of the entire financial services industry which will, in turn, promote customer confidence.
The FSA will produce a guide for advisers and intermediaries that are not currently regulated and it looks like the proposed legislation will pass through Parliament in June and October this year.