The Office of Fair Trading recently announced it is referring the payment protection insurance market to the Competition Commission, but some advisers and providers have raised doubts about whether such a move is appropriate.
The decision follows a damning report by the OFT which suggests consumers are being failed by the PPI market and the way products are purchased hinders competition. But Alan Lakey, partner at Highclere Financial Services, is unconvinced the referral to the Competition Commission will result in any improvements in the way PPI is sold. He states: "I'm not sure the referral will do much more than add a little bit of pressure on providers. There are so many committees investigating financial matters which come up with phrases but often don’t get things done." In particular, Lakey is conce...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes