THE Financial Services Authority, which is responsible for regulating the Financial Services Industry, is set to expand its role when it assumes responsibility for mortgage advice from October 2004 and general insurance from January 2005.

With regard to mortgage advice, most mortgage brokers operate under a voluntary code at the moment but that is set to change this coming October.

There is further good news for consumers with additional protection arriving. Mortgage lenders and brokers will have to take on board and implement new rules governing how they sell products to consumers who are buying from the comfort of their own home.

The Financial Services Authority has set out its proposed plans, which is expected to bring its existing regulations more into line with continental Europe. The Distance Marketing Directive has already been adopted across Europe and the Financial Services Authority will be responsible for implementing the directive for those companies it already regulates and those that become its responsibility from October 2004.

So what will this mean for consumers? Well its aims are to provide increased protection and a greater choice for consumers throughout the European Union. It will establish minimum standards for information that is provided to consumers as well as the ability to cancel the product they have brought during a cooling-off period.

Therefore, once these proposals are fully implemented across the European Union, then if you buy a retail financial services product whether it is in person, by post, by telephone or via the internet, you will be given common rights and protection when dealing with any financial services company within the European Union.