Following the FCA’s November 2015 consultation paper ‘Rules and guidance on payment protection insurance’ (CP15/39), which set out the FCA’s proposed rules and guidance on payment protection insurance (PPI) mis-selling complaints, the FCA has now published CP16/20 containing the FCA’s feedback statement on CP15/39 and a further consultation on changes to the proposed rules and guidance following the feedback received on CP15/39.
The FCA’s proposed package of rules and guidance includes imposing a deadline for making new PPI complaints and launching a consumer communications campaign to raise awareness of the PPI issue and the deadline. The FCA also intends to make rules and guidance on handling of PPI complaints in light of the Supreme Court judgment in Plevin v Paragon Personal Finance Ltd(Plevin).
The newly proposed amendments, set out in CP16/20, relate in particular to three key aspects of the rules and guidance:
- to include profit share in the FCA’s approach to the assessment of fairness and redress
- to allow previous rebates to a consumer when they cancelled their PPI policy to be partly reflected in (and so reduce) any redress due
- to clarify how firms should assess fairness and redress where commission or profit share rates vary during the life of the PPI policy.
The consultation will close on 11 October 2016.