§ Barbara FollettTo ask the Chancellor of the Exchequer what plans he has to extend the scope of the Financial Services Authority's responsibilities. [23124]
§ Ruth KellyIn the light of representations made by the industry and others and taking account of the views of the report and responses to the Banking Services Consumer Codes Review, I have decided to extend the FSA's powers to enable it to regulate mortgage intermediaries and advice. The FSA will also be given responsibility for regulating general insurance intermediaries.
891WGiving the FSA powers to regulate mortgage and insurance intermediaries will streamline regulation. Intermediaries selling a range of products—general insurance, pensions, or mortgages—will all come under the FSA as single regulator, minimising compliance costs.
I intend to consult others on the appropriate transitional arrangements to ensure a smooth handover of responsibility to the FSA.
A regulatory impact assessment of the decision to give the FSA responsibility for regulating mortgage advice and general insurance intermediaries is available in the Library.