Shortcomings in the payment protection insurance market may limit the extent to which lighter-touch regulation can be incorporated into the insurance conduct of business regime, suggests the Financial Services Authority.
Speaking at a conference on the future of PPI and MPPI, Stuart King, head of market intelligence and retail themes at the FSA, says the regulator has been looking seriously at whether and how it could make the ICOB regime more risk-based. He states: “In reviewing our rules, we will focus on the obligations that flow from the principles for businesses that encourage senior management to take responsibility for enabling their customers to make an informed decision.” But King says this light-touch approach may be limited by the failures witnessed during the PPI sales process and specific...
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