FSA disappointed with industry criticism of PPI reforms
Daniel Dunkley Postonline
The regulator confirmed it received 51 detailed responses in response to its consultation (CP 09/23), from a wide range of stakeholders.
Consumer groups were very supportive of the proposals but PPI providers and industry groups were highly critical, the regulator said.
As a result of the feedback, there have been some revisions to the original proposals which, in the FSA’s view, warrant a further short consultation.
The wider costs and consumer benefits have altered since the original consultation, and the FSA has indicated it would like to test the revised financial assumptions with firms.
The FSA’s proposed package of measures is designed to provide protection to consumers, when buying new PPI policies or making a complaint about an existing one.
Dan Waters, the FSA’s director of conduct risk, added the regulator was unhappy with criticism of its proposals: “We’re disappointed that the industry has responded so critically to our proposals but we remain 100 per cent committed to bringing about genuine, lasting change in the PPI market. We do, however, recognise the importance in ensuring that genuine concerns have been listened to.
“Our commitment, nevertheless, is evidenced by the fact that we have halted single premium PPI sales, taken enforcement action against 23 firms, issued two ‘Dear CEO’ letters, undertaken three thematic reviews, conducted numerous mystery shops, and visited over 200 PPI providers. We remain firmly of the view that the PPI market is broken and needs to be fixed.”
The FSA invites further comments on its proposals, and responses must be received by 22 April 2010.
A link to the FSA website, and consultation papers 10/6 and 09/23, is available here.
The regulator confirmed it received 51 detailed responses in response to its consultation (CP 09/23), from a wide range of stakeholders.
Consumer groups were very supportive of the proposals but PPI providers and industry groups were highly critical, the regulator said.
As a result of the feedback, there have been some revisions to the original proposals which, in the FSA’s view, warrant a further short consultation.
The wider costs and consumer benefits have altered since the original consultation, and the FSA has indicated it would like to test the revised financial assumptions with firms.
The FSA’s proposed package of measures is designed to provide protection to consumers, when buying new PPI policies or making a complaint about an existing one.
Dan Waters, the FSA’s director of conduct risk, added the regulator was unhappy with criticism of its proposals: “We’re disappointed that the industry has responded so critically to our proposals but we remain 100 per cent committed to bringing about genuine, lasting change in the PPI market. We do, however, recognise the importance in ensuring that genuine concerns have been listened to.
“Our commitment, nevertheless, is evidenced by the fact that we have halted single premium PPI sales, taken enforcement action against 23 firms, issued two ‘Dear CEO’ letters, undertaken three thematic reviews, conducted numerous mystery shops, and visited over 200 PPI providers. We remain firmly of the view that the PPI market is broken and needs to be fixed.”
The FSA invites further comments on its proposals, and responses must be received by 22 April 2010.
A link to the FSA website, and consultation papers 10/6 and 09/23, is available here.
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