Response: Financial Services Bill pre-legislative scrutiny

By: Robbie de Santos  Published: September 2011


Shelter is interested in the Financial Services Bill because we know that poor financial regulation led to reckless mortgage lending, with severe consequences for individual borrowers, the housing market and the wider economy. As such, Shelter broadly welcomes the consumer protection proposals set out by the government in the draft legislation, which we believe could help to prevent the scale and the severity of the lending practice we witnessed in the build up to the financial crisis.

Summary

Shelter believes mortgages are a striking example of how poor regulation of lender practice has harmed individual consumers and the wider economy, particularly as residential mortgage lending makes up 86% of all lending to individuals in the UK. Mortgage lending should act as a powerful precedent when parliamentarians assess the effectiveness of both prudential and conduct regulation set out in the draft legislation.

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