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
Hopes rise for EU re-entry to UK swaps market
EC says discussions on draft decision softening derivatives trading obligation are ‘advanced’
BoE’s Ramsden defends UK’s ring-fencing regime
Deputy governor also says regulatory reform is coming to the UK gilt repo market
Credit spread risk: the cryptic peril on bank balance sheets
Some bankers fear EU regulatory push on CSRBB has done little to improve risk management
Credit spread risk approach differs among EU banks, survey finds
KPMG survey of more than 90 banks reveals disagreement on how to treat liabilities and loans
Bowman’s Fed may limp on by after cuts
New vice-chair seeks efficiency, but staff clear-out could hamper functions, say former regulators
Review of 2025: It’s the end of the world, and it feels fine
Markets proved resilient as Trump redefined US policies – but questions are piling up about 2026 and beyond
Hong Kong derivatives regime could drive more offshore booking
Industry warns new capital requirements for securities firms are higher than other jurisdictions
Will Iosco’s guidance solve pre-hedging puzzle?
Buy-siders doubt consent requirement will remove long-standing concerns
