FSA consults again on PPI reforms

by Gill Montia

Story link: FSA consults again on PPI reforms

The Financial Services Authority (FSA) has published feedback on its plans to reform the Payment Protection Insurance (PPI) market and at the same time announced a further consultation on a revised package of measures aimed at ensure customers are treated consistently and fairly, either when buying new PPI policies or making a complaint about an existing one.

The regulator received 51 responses from stakeholders and while consumer groups were very supportive of its proposals, PPI providers and industry groups were highly critical.

It has therefore revised some of the original proposals which will be subject to a short consultation.

For example, the wider costs and consumer benefits have altered since the original consultation and the regulator wants to test revised financial assumptions with firms.

The FSA’s director of conduct risk, Dan Waters, comments: “We’re disappointed that the industry has responded so critically to our proposals but we remain 100% committed to bringing about genuine, lasting change in the PPI market.”

He adds: “We remain firmly of the view that the PPI market is broken and needs to be fixed.”

Responses to the revised proposals must be received by 22nd April 2010.