FSA concentrates on PPI

Payment protection insurance (PPI) is to be the subject of a major FSA thematic review, to be completed by the end of June this year, when the regulator will have visited 200 firms in the sector in two years. The aim is to improve sales standards, which Clive Briault, FSA Managing Director, Retail Markets, says represents “an indicator of whether firms are treating their customers fairly”. The regulator has already launched enforcement action again ten firms. The project will examine if customers are told when PPI is optional; if they are provided with clear information about the cover and its cost; whether they are helped to understand their eligibility under the policy and any exclusions; also, if suitable advice is given and a fair refund offered should they decide to cancel their contract.