Focus on Finance http://www.focusonfinance.org.uk/index.html News and events from Focus on Finance Mon, 06 Jul 2009 10:00:00 GMT en-uk Podcast of fourth debate http://www.focusonfinance.org.uk/debate4.html http://www.focusonfinance.org.uk/debate4.html Wed, 17 Feb 2010 10:00:00 GMT You can now listen to an exclusive podcast featuring the panellists from the fourth seminar.

]]> Podcast and summary of third debate http://www.focusonfinance.org.uk/debate3.html http://www.focusonfinance.org.uk/debate3.html Thu, 29 Oct 2009 10:00:00 GMT You can now listen to an exclusive podcast featuring the panellists from the third seminar and read a summary of the main points of discussion raised during this third event.

]]> FSA sets out major reforms for the mortgage market http://www.focusonfinance.org.uk http://www.focusonfinance.org.uk Tue, 20 Oct 2009 10:00:00 GMT The Financial Services Authority (FSA) today sets out proposals for the major reforms required in the UK mortgage market to ensure that it works better for consumers and is sustainable for all market participants. The proposals, published in the mortgage market review discussion paper, reflect the FSA’s changed approach to a more intrusive and interventionist style of regulation.

The review’s key features are:

  • Imposing affordability tests for all mortgages and making lenders ultimately responsible for assessing a consumer’s ability to pay;
  • Banning ‘self-cert’ mortgages through required verification of borrowers’ income;
  • Banning the sale of products which contain certain ‘toxic combinations’ of characteristics that put borrowers at risk;
  • Banning arrears charges when a borrower is already repaying and ensuring firms do not profit from people in arrears;
  • Requiring all mortgage advisers to be personally accountable to the FSA;
  • Calling for the FSA’s scope to cover buy-to-let and all lending secured on a home.

]]> Podcast and summary of second debate available http://www.focusonfinance.org.uk/debate2.html http://www.focusonfinance.org.uk/debate2.html Mon, 28 Sep 2009 10:00:00 GMT You can now listen to an exclusive podcast featuring the panellists from the second seminar and read a summary of the main points of discussion raised during this second event.

]]> Debate 2 details announced http://www.focusonfinance.org.uk/debate2.html http://www.focusonfinance.org.uk/debate2.html Thu, 20 Aug 2009 10:00:00 GMT At our second seminar Professor John Kay will present a paper considering how the fallout of the financial crisis has affected competition in retail financial services. The last two years have seen major structural changes to the market for financial services driven by nationalisation, state backed recapitalisation and considerable consolidation. This raises some important questions for consumers; for example, where normal competition and state aid rules were waived, was there evidence of trade off between financial stability and full and fair competition? What balance between these two objectives delivers the greatest consumer welfare? Is the structure of the market for banking, mortgages, credit cards, investment products, general and life insurance right? If competition has been harmed, should past interventions be unravelled and distortions created by them be removed? If there is to be a future reference to competition regulators, how should this be framed? And what other interventions, if any, might be necessary?

For more details check the Focus on Finance website

]]> Consumer Focus reaction to the Conservatives’ proposals for the regulation of financial services below http://www.focusonfinance.org.uk/index.html http://www.focusonfinance.org.uk/index.html Mon, 20 Jul 2009 10:00:00 GMT Commenting on the Conservatives’ proposals for the regulation of financial services, Philip Cullum, Deputy Chief Executive, Consumer Focus, said:

“The FSA has been slow to step in and help the consumers it was set up to protect. For too long it has shied away from tough enforcement and has let the financial sector get away with treating customers appallingly.

“Consumers must be at the heart of any new regulatory framework, whatever shape it takes. To this end it’s encouraging to see proposals for consumer experts to sit on the board of the proposed Consumer Protection Agency.

“We have long argued that the FSA should make information - such as complaints data – public so consumers can make decisions on financial firms for themselves. The proposals to name and shame financial firms would make this information available to consumers and encourage them to start competing on reputation, not just price.

“The spate of mergers in the retail banking sector raise serious questions about competition and choice for consumers. The proposal for an investigation comes not a moment too soon, but Government should pick this up so it isn’t delayed until after the next election.”

]]> Conservative Party launches its financial services Policy White Paper http://www.conservatives.com/News/News_stories/2009/07/~/media/Files/Downloadable%20Files/PlanforSoundBanking.ashx http://www.conservatives.com/News/News_stories/2009/07/~/media/Files/Downloadable%20Files/PlanforSoundBanking.ashx Mon, 20 Jul 2009 10:00:00 GMT George Osborne has today launched the Conservative Party’s financial services Policy White Paper. Proposing a large overhaul of regulatory architecture, a Conservative government will transfer financial services oversight from the FSA to the Bank of England. An examination of the effects of consolidation in the banking sector will be undertaken and the Conservatives also propose to create a Consumer Protection Agency which will bring together the consumer powers currently held by the FSA and OFT.

]]> Vince Cable delivers speech on reform of banking regulation http://www.focusonfinance.org.uk/index.html http://www.focusonfinance.org.uk/index.html Mon, 20 Jul 2009 10:00:00 GMT Vince Cable has today outlined the Liberal Democrats’ plans for reforming the financial services sector. In his speech he called for:

  • RBS and Lloyds to be broken up before they are returned to private ownership
  • Highly paid bankers to publish details of their remuneration and confirm they are resident and domiciled in the UK
  • The FSA to remain as a unitary regulator
  • A long-term role for state banking, rather than the quick sale of state-owned banks
  • The scrapping of the ‘woefully misconceived' Asset Protection Scheme
  • Board size, composition and qualifications

]]> Walker Review interim report published http://www.hm-treasury.gov.uk/d/walker_review_consultation_160709.pdf http://www.hm-treasury.gov.uk/d/walker_review_consultation_160709.pdf Thu, 16 Jul 2009 10:00:00 GMT Walker has today published his interim report on corporate governance for consultation. The report considers:

  • Board size, composition and qualifications
  • Functioning of the board and evaluation of performance
  • The role of institutional shareholders: communication and engagement
  • Governance of risk
  • Remuneration

The consultation runs until 1st October and the report can be downloaded here.

]]> Podcast and summary of first debate available http://www.focusonfinance.org.uk/debate1.html http://www.focusonfinance.org.uk/debate1.html Tue, 14 Jul 2009 10:00:00 GMT You can now listen to an exclusive podcast featuring the panellists from the first seminar and read a summary of the main points of discussion raised during this first event.

]]> Government launches Reforming Financial Markets White Paper http://www.hm-treasury.gov.uk/speech_chex_080709.htm http://www.hm-treasury.gov.uk/speech_chex_080709.htm Wed, 08 Jul 2009 10:00:00 GMT The Government today published its White Paper on financial services. The centerpiece of the government’s plan is the creation of a new Council for Financial Stability bringing together the FSA, HM Treasury and the Bank of England to focus on macro prudential issues. There are also plans in the white paper to create a National Money Guidance Service and a new consumer body on financial capability will be formed.
To read the Chancellor’s statement to the House of Commons click on the above link.
To download the White Paper click here.

]]> Focus on Finance: Financial Regulation – Consumer Safeguard or Straightjacket? http://www.focusonfinance.org.uk/debate1.html http://www.focusonfinance.org.uk/debate1.html Wed, 08 Jul 2009 10:00:00 GMT The first seminar in the Focus on Finance series took place today at the Royal Society of Arts. John Howard presented his paper on consumer protection in which he discussed the merits of establishing a ‘suite of safe products’ and called for independent financial advisors to be paid for by the consumer seeking advice. Christine Farnish of Consumer Focus chaired the debate and Otto Thoresen of AEGON UK and Neil O’Brien of Policy Exchange were panelists. For further details of the launch seminar click on the above link. Consumer Focus comment in advance of Financial Services White Paper http://www.consumerfocus.org.uk/ http://www.consumerfocus.org.uk/ Tue, 07 Jul 2009 10:00:00 GMT Commenting on the eve of the Treasury White Paper, Ed Mayo, Chief Executive, Consumer Focus, said:
“The real costs of the credit crunch are being landed on consumers, as banks fatten their margins and limit credit to all but the most profitable.
“The Treasury White Paper is the best chance that we have to get the balance right. The government needs to ensure that regulation does not just address yesterday’s problems but also the way that banks are behaving now.
“We welcome the signs that government will improve consumer protection in the financial services market.
“The one change that could make most difference is to introduce new ways for consumers to come together to take class actions when things go wrong. The bank charges case shows that consumers urgently need quick, cheap and effective redress.
“More needs to be done to help consumers switch between financial firms. Switching rates are low in this sector, but firms would soon take notice if consumers were given clear information about company performance and started to vote with their feet.”

]]> Focus on Finance website goes live http://www.focusonfinance.org.uk/index.html http://www.focusonfinance.org.uk/index.html Mon, 06 Jul 2009 10:00:00 GMT The Focus on Finance website was launched today. Details of forthcoming seminars in the Focus on Finance series can be found on this site, along with links to the papers when published, and a forum for further comment and debate. OFT to review high cost consumer credit sector http://www.oft.gov.uk/news/press/2009/78-09 http://www.oft.gov.uk/news/press/2009/78-09 Thu, 02 Jul 2009 10:00:00 GMT The OFT today launched a review into the supply of high cost credit as part of its ongoing Financial Services Strategy. The OFT estimates that the size of the high cost credit sector is up to £35 billion annually. Many of the customers affected are from vulnerable groups and the industry is characterised by loans for small amounts with high APRs. Consumer White Paper launched http://www.berr.gov.uk/whatwedo/consumers/consumer-white-paper/index.html http://www.berr.gov.uk/whatwedo/consumers/consumer-white-paper/index.html Thu, 02 Jul 2009 10:00:00 GMT “A Better Deal for Consumers - Delivering Real Help Now and Change for the Future”, published by the government, sets out action to encourage responsible lending and provides a longer term framework to strengthen and enforce consumer rights in the wider economy and a changing financial environment. To view the white paper click the arrow above.