Mortgage News
Ten point plan to a better financial industry issued
The Financial Services Consumer Panel has called for a more flexible approach over lending to self-employed borrowers in its plan for a better financial services sector.
The Consumer Panel has issued a ten point plan to improve the industry ahead of the Chancellor’s Mansion House speech tonight, highlighting what it feels are the priorities for the future of the sector.
One of its ten points is to have responsible lending in the mortgage market, with products that are easily compared and the total cost is easily understood, and tailored, individual solutions when it comes to managing mortgage arrears.
In addition, it said a “sensible approach” must be taken when verifying the income of self-employed borrowers and lenders should be “flexible and intelligent” about what type of independent income verification is accepted.
The Consumer Panel also called for relevant, independent and unbiased advice for consumers, with high professional standards and ongoing professional development. It recommended implementing simpler advice structures to direct consumers to appropriate advice and products.
The Consumer Panel’s other points included: having straightforward products which “do what they say on the tin”, treating customers fairly, better banking, dependable later life products, intelligent regulation, making firms play by the rules, effective redress and timely and appropriate compensation.
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Adam Phillips, chair of the Consumer Panel, said: “We welcome the Chancellor’s wish to improve financial services. However, it is vital that the successes of the FSA are built upon and that we learn from its mistakes. The retail financial services industry is a vital service which all members of the public need to access. The challenge remains getting the industry to produce better outcomes. There needs to be a clear focus on the areas where more work must to be done.”
He added: “The Consumer Panel wants to see the industry and regulators working together to make financial services better.
“Our plan is not intended as a panacea, but as a series of practical steps which would significantly enhance the consumer experience of financial services in the UK. The Consumer Panel hopes that our ten points will be of assistance to industry, regulators and politicians in providing a fairer and more sustainable future for financial services.”