Credit card insurer CPP has closed its shares on the London Stock Exchange amid concerns an investigation being conducted by the Financial Services Authority (FSA) was impacting its business.
The firm has been under FSA scrutiny since last March, with the regulator posing questions regarding the way in which identity theft and credit protection products were being sold to consumers.
CPP Chief executive Paul Stobart said: “The board of CPP has informed the FSA that its requirements are disproportionate and threaten the viability of the business.”
This comment followed the revelation that the watchdog wanted to undertake more reviews of sales, as well as make changes to CPP’s renewals process.
CPP took the decision to suspend its shares, suggesting the FSA investigation meant annual results could not be accurately calculated at this point.
While CPP is working closely with the regulator to reach a conclusion, it has maintained there is not date set for completion.
Last week, it was revealed Barclaycard would not be renewing its contract with CPP, which expires on March 31st.
Posted by Claire Robin