On 10 August 2010, the Financial Services Authority published a Policy Statement confirming its package of measures to protect consumers of payment protection insurance (PPI).
The Policy Statement follows the Consultation Paper issued in March 2010 (CP10/6)(see our blog here). The FSA confirms in the Policy Statement that it will broadly proceed with the proposed measures set out in CP10/6, with some amendments made to take into account concerns raised by the industry in responses to CP10/6.
The measures include:
- new FSA handbook guidance to ensure PPI complaints are handled properly (and redressed fairly, where appropriate);
- an explanation of when and why firms should analyse past complaints to identify if there are serious flaws in sales practices that may have affected both complainants and non-complainants; and
- an open letter setting out common sales failings to help firms identify bad practice.
These measures must be implemented by 1 December 2010.
A copy of the FSA’s press release can be found here. The full Policy Statement can be found here.
