2 May 2013
The Financial Services Consumer Panel today welcomed the Financial Conduct Authority’s (FCA) early action on interest only mortgages following the publication of its research into the sector.
For many years the Panel has advocated early intervention and pre-emptive action in the face of emerging threats to protect consumers from harm. We are pleased that the new regulator is being proactive in making consumers aware of potential pitfalls and empowering them to take action at an early stage.
Adam Phillips, Consumer Panel Chair commented:
“Interest only mortgages are a useful product when sold correctly and fully understood by those purchasing them. Investigation by the FCA suggests that some consumers with interest only mortgages are likely to find themselves facing a shortfall without a clear repayment strategy. We welcome the FCA’s work since early intervention by the regulator helps to minimise consumer detriment and has been one of the Panel’s consistent demands.”
Notes to editors
- Biographical details for Adam Phillips and photographs in a range of resolutions are available on our website: http://www.fs-cp.org.uk/about_us/adam_phillips.shtml[1]
- The Consumer Panel is a statutory body under the Financial Services Act 2012. It was initially established by the Financial Services Authority in December 1998. The Panel advises the FCA on the interests and concerns of consumers and reports on the FCA's performance in meeting its objectives.
- The Panel’s membership is drawn from a broad range of backgrounds with expertise including market research, law, financial services industry, financial inclusion, European Regulation, financial regulation, consumer advice, campaigning, communications, compliance and later-life issues.
- The emphasis of the Panel's work is on activities that are regulated by the FCA, although it may also look at the impact on consumers of activities outside but related to the FCA's remit. More information about the Panel's work is available here[2].