The FSA will begin regulating the mortgage and general insurance sectors in October 2004, the Treasury confirmed this morning.

Financial Secretary to the Treasury Ruth Kelly said she was able to make the announcement now the European Parliament had adopted the Insurance Mediation Directive.

"Regulation will ensure that a high standard of advice is available across the board to a large number of people," she said.

"The government will be working closely with the industry and others to design a regime that is targeted precisely at maximising benefits to the consumer and not loading industry and ultimately the consumer with unnecessary costs."

Kelly said the Treasury would publish its consultation document on the directive "shortly".

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