FSA targets PPI failures with updated insurance rules

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The FSA has targeted payment protection insurance (PPI) failures in its new Insurance Conduct of Business sourcebook (ICOBS).

The FSA has used the updated rulebook to enforce stronger rules to improve selling standards in PPI markets, including increasing the existing cancellation period from 14 days to 30 days. There will also be a rule requiring firms to establish customers would become eligible to claim benefits and a greater focus on oral disclosure to clients of the main characteristics of a product. The FSA says: "We have amended the rule to highlight that the information should be enough to enable the customer to take an informed decision, but the firm must not overload the customer or obscure other p...

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