Financial Services Bill

I am certain that the FCA's broad range of powers will enable it to do that. It can use its powers in pursuit of its consumer protection objectives. However, those are not the only powers that are available. The hon. Member for Makerfield (Yvonne Fovargue) asked whether the FCA would be able to suspend permission with immediate effect. Under new section 55Y, it will be able to vary the permission of a firm, or to impose a requirement on a firm with immediate effect if it considers that to be necessary. We will consider whether the OFT should be given the same powers in the interim. A helpful question was asked about the asymmetry between the information given to lenders and that given to borrowers, and about whether a cash illustration could be provided alongside information about the annual percentage rate. The consumer credit directive requires the costs of credit to be specified in terms of the APR. The Commission will review the directive in 2013. We have ensured that there is a new ““with regard to”” provision for the FCA—something else that it must consider when it seeks to secure an appropriate degree of protection for consumers. Consumers must have timely provision of information, and that advice must be accurate and be fit for purpose in the eyes of the consumer, not those of the provider of the service. We will consider whether a provider of consumer credit should quote an indicative cash cost alongside the APR. New clause 10, tabled by the hon. Member for Nottingham East, proposes that potential interest rate changes and their costs be included. I do not think that is necessary as rules are in place. I have mentioned that there is a new power in the Bill enabling the FCA to require providers to supply adequate information that is fit for purpose. A number of lenders already provide information to borrowers about the impact of rate changes. People who come off a fixed-rate mortgage will get information to help with that from their lender. The mortgage market review is currently out to consultation. One of its provisions requires lenders to think about the impact of interest rate increases on the ability of borrowers to service their mortgage debt. That is a helpful move, because the hon. Gentleman was right to make the point that interest rates could increase and that that could have an impact on family finances. Tools should be available to help families to budget and to think about the impact of mortgage rate changes. Lenders should ensure that that is easily accessible, and the Money Advice Service and others operating in this field should ensure that calculations or ready reckoners are in place. I do not think provision for that is needed in the Bill, but I do think it is an important topic that we must consider.