The panel said the Consumer Rights Bill, which is due to have its second reading in Parliament today, required amendments before it was finalised.
The bill's aim is to update consumer law and clarify and simplify rights on goods and services for consumers and businesses.
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FSCP chair Sue Lewis said: "The panel fully supports the introduction of the Consumer Rights Bill but we think it needs improvements to work better for financial services consumers, who are at particular risk of detriment.
"We would like to see the issues we have identified addressed as the bill passes through Parliament.
"Given this is the most radical overhaul of consumer law for more than three decades, it is important we get it right."
The panel's three requests for change are:
- The exemption from the 'fairness' test should apply only to a transparent price, agreed by the consumer at the point of entering the contract, and not to variable future fees or charges which are unknown at the time the contract is signed.
- The definition of 'average' consumer - the phrase 'taking into account social, cultural and linguistic factors' should be added to the definition.
- The right to cancel for 'mortgage prisoners' - the right to cancel may not protect consumers who cannot secure an alternative mortgage product. This set of circumstances should be added to the indicative list of unfair contract terms.