Government is now taking forwards the Financial Services Bill which aims to reform the financial system in order to ensure future stability. This follows a consultation by the Treasury concerning the causes of the global financial crisis and the measures needed to ensure that such a catastrophe is averted in the future

However, we are concerned that Government has missed the point. It is far too focussed on issues concerning bankers pay, and not adequately concerned with protecting consumers and ensuring responsibility in the products that lenders provide.

We have provided a seven point plan which would provide a much better basis for reform. The plan consists of:

Reviewing the FSA's governing principles and making consumer protection it's main priority

Grant the OFT and FSA powers to impose price caps

Limit the amount of debt that households are able to take on relative to their income and essential outgoings

Review insolvency rules and credit scoring systems so that people are not excluded from mainstream finance because of this recession

Insist that banks use the taxpayer investment to help those most in need by rescheduling mortgage and other debts at low interest rates

Place all banks under an obligation to serve all income groups or contribute to the funding of credit unions and community based lenders

The full statement can be downloaded here