FSA asks firms to stop selling single-premium PPI
UK regulator requests that firms cease selling single-premium PPI for unsecured personal loans
LONDON - The Financial Services Authority (FSA) has published a 'Dear CEO' letter to firms exhorting them to stop selling single-premium payment protection insurance (PPI) for unsecured personal loans as soon as possible but at the latest by May 29, 2009.
The UK regulator has honed in on the mis-selling of PPI since the launch of its Treating Customers Fairly initiative. The regulator fined UK bank Alliance and Leicester £7 million for PPI mis-selling in October 2008 and online bank Egg £721,000 for PPI abuse in December.
The FSA says its request is in line with previous statements asking firms to consider whether they should sell the controversial insurance policies and outlining concerns about poor sales practices.
A number of major banks have already stopped selling PPI and the independent Competition Commission's final PPI report on January 29 included a recommendation to prohibit the sale of single-premium PPI policies after October 1, 2010.
The Dear CEO letter may be read here.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Regulators must think bigger to tackle tech risks, says Hong Kong SFC
Leung warns AI adoption and recent cyber scares show new threats require global co-operation
Time to let some air out of the banking system?
Watchdogs worry about lowering standards, but policy-makers eye growth – they face a difficult dilemma
Competitiveness mandate for Esma faces uphill battle
European Parliament offers last chance to force Esma to take more nuanced approach
Europe expects FRTB to bite on XVA hedges
Risk Benchmarking: One-third of European dealers fear new market risk rules will have major effect on hedges
Burning ambition: will Europe join the US in setting fire to the rules?
As the US dismantles post-crisis regulations, some think Europe will follow in a bid to boost economic growth
Can US perpetual futures solve their identity crisis?
Market could fall under four different regulatory categories, with sharply diverging outcomes
Banks want AML data upgrade to complement US regulatory reform
FinCEN’s proposed overhaul sparks debate on whether it will lead to smarter or weaker supervision
Industry pushes EU exchanges to solve equity post-trade frictions
Deutsche Bank, Goldman Sachs and JP Morgan join calls for mandatory cash CCP interoperability
