.jpg)
The Financial Conduct Authority (FCA) wants to set the record straight in terms of complaints handling involving Payment Protection Insurance (PPI).
This morning the regulator launched a two-month consultation into its proposed guidance aimed at addressing “an uncertainty that has emerged” since it made rules in March 2017 in relation to the Supreme Court judgment in Plevin.
“Recent discussions with stakeholders have shown us that there is uncertainty about some complaints about regular premium PPI,” said the FCA in its consultation paper. “Namely, should firms consider recurring non-disclosure(s) of the existence of, or level of, commission and/or profit share when assessing these complaints?”
From the watchdog’s perspective, firms should assess commission disclosures not only at the point of sale but on an ongoing basis – and this is what the guidance clarifies.
“This consultation provides guidance on how to ensure fair and consistent outcomes for regular premium PPI complaints,” said FCA’s Jonathan Davidson, executive director of supervision – retail and authorisations. “It supports our aim of bringing the PPI issue to an orderly conclusion in a way that secures appropriate protection for consumers and enhances the integrity of the UK financial system.”
The regulator added that its announcement “has no relation to the outcome of recent court cases.” Yesterday we reported on a Manchester County Court ruling which involved an undisclosed 76% commission.
The consultation will close on September 04.
