FSA extends PPI regulation consultation

10^th March 2010 at 17:13

The Financial Services Authority (FSA) is to delay the measures planned to reform the way payment protection insurance (PPI) is sold.

According to the regulatory body, it will take another six weeks to complete the proposals after considering varied criticisms from firms involved in PPI.

However, positive feedback from consumer protection organisations means that the FSA is unlikely to back down.

Businesses complained that wider costs and consumer benefits have changed since the original consultation was launched and the FSA said it will need time to test revised financial expectations.

Dan Waters, director of conduct risk at the FSA, said: "We're disappointed that the industry has responded so critically to our proposals but we remain 100 per cent committed to bringing about genuine, lasting change in the PPI market."

The FSA recently hinted that it is likely to continue with its tough position on mis-selling life insurance policies after the retail distribution review is introduced, the Financial Times reported.

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