Watchdog's top two face MPs

THE Financial Services Authority's chief executive, John Tiner, and chairman Callum McCarthy, face a Commons Treasury Select Committee today.

The watchdogs will be quizzed by MPs as to the extent of the endowment mortgage mis-selling scandal.

The MPs are likely to ask the executives about their priorities and strategy for the City regulator, which has been accused of failing to protect consumers who have been the victims of mis-selling.

Some 6m people throughout the country are believed to face shortfalls on the investment plans which may total up to £95bn.

With the financial gaps likely to average between £11,000 and £14,000 per family, many may not be able to pay off their home loans.

Millions of endowment holders who were expecting a tax-free 'pot of gold' for retirement also face disappointment.

Endowment policies are investment schemes that include life assurance. Their yield at the end of the term depends on stock market performance.

As overall stock market returns in recent years have been relatively disappointing, some policies may not produce enough money to cover the home loan.

Families expected to be caught in the endowment trap have been advised to take early action to ensure they can pay off their mortgage.

However, it has emerged that as many as 1.2m have not done so.