View more on these topics

Sales of regular MPPI generally compliant say FSA

Clive Briault, managing director of retail markets at the FSA, has revealed sales of regular premium MPPI are generally compliant with FSA rules, although other sectors selling PPI are continuing to perform poorly.

In a speech at the Chartered Insurance Institute annual conference, Briault said: “We have just completed a series of visits to look at PPI selling practices in firms ranging from high street banks to motor dealers and small mortgage intermediaries.

“We are also undertaking mystery shopping work and will be feeding back the results from the mystery shopping and firm visits later this year.

“Our findings from the firms visits are variable. Some firms demonstrated good compliance with our rules – they were addressing problems that may have existed in the past, such as checking that customers are eligible for the policy before selling it.

“For example, we found that regular premium PPI sold with prime mortgages seems generally compliant with our rules. However, selling practices in other sectors were very poor”

Graham Boulger, group commercial director at Paymentshield, says the findings indicate that a FSA review of MPPI selling might not be on the cards.

He says: “This backs up what we have been saying for some time and hopefully alleviates mortgage advisers concerns that there will be a wide ranging FSA review of MPPI.

“There is no evidence of systemic mis-selling of MPPI but there is reluctance from mortgage advisers to sell MPPI at the moment because of the media attention focused on loan payment protection.

“What Briault says is absolutely true when he draws the analogy with travel insurance.

“The MPPI market is the only PPI sector where there is open market competition between lenders and intermediaries and this results in consumer choice.

At the same time, the competitive pressures ensure that premiums and commissions are kept at acceptable levels. The same cannot be said for loan PPI.”


Zurich revamps network offer

Zurich Intermediary Group has refreshed its mortgage network proposition. A diverse panel of lenders together with exclusives such as Bristol & West’s first start mortgage have been chosen. Also available are a range of new benefits, competitive proc fees and free access to sourcing software. With the addition of 16 lenders, the total now available […]

Pink cuts rates

Pink Home Loans has improved rates across its branded lending range funded by First National. Fixed rates are now 0.25% better than the old range and discounts have been increased to 1.65% for one-year and 1.15% for two-year discounted products.

TFC appoints Jayne Emery as head of field sales

The Finance Centre has promoted Jayne Emery to head of field sales. Emery, who has been with TFC for three years, had previously been regional sales manager and brings nearly 15 years of experience to her new role.Her core responsibilities will include control of the national sales team and their personal and professional development.Andy Brown, […]

Cost of regulation little value to consumers, reveals IMLA

Research by the Intermediary Mortgage Lenders Association earlier this year has revealed that many lenders have seen little value for the substantial costs to consumers from mortgage regulation.These research findings triggered IMLA to conduct further research, this time among the intermediaries that provide IMLA members with most of their mortgage business. This additional research has […]


DB transfer showstoppers

By Jim Grant, Senior Product Insight & Technical Support Analyst Transfers from defined benefit (DB) schemes are a bit of a hot topic just now. In this article we look at a couple of factors that could prevent a transfer from happening Equalisation of pensions Prior to the Barber case in 1990, DB pension schemes typically provided […]


News and expert analysis straight to your inbox

Sign up