OCED launches new financial guidelines

7 July 2009

New rules regarding the sale of financial services have been introduced by the Organisation for Economic Cooperation and Development (OECD).

The body has made the changes - which cover mortgages, consumer loans and other financial products - in a bid to prevent a repeat of the sub-prime mortgage crisis that was the catalyst for the recession.

Under the changes, lenders will be required to explain the consequences of missing a payment to a customer, as well as prominently display the terms and conditions that apply to financial products.

The OECD has recommended that governments make the new guidelines a legal obligation and Andre Laboul, head of the OECD's financial affairs division, stated they address an issue that has been largely "overlooked" in the discussions covering how to resolve the financial crisis.

Earlier this week, the Financial Services Authority announced new regulations that could see fines for companies found guilty of breaching market rules triple in size.

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