In a feedback response to its consultation CP 09/23, the FSA received 51 detailed responses from a wide range of stakeholders.
While consumer groups were supportive of the proposals, PPI providers and industry groups were highly critical.
The regulator has decided there have been some revisions to the original proposals and it wants to test the revised financial assumptions with firms.
The FSA’s proposed package of measures is designed to ensure customers are treated consistently and fairly, either when buying new PPI policies or making a complaint about an existing one.
Dan Waters, director of conduct risk at the FSA, commented: “We are disappointed that the industry has responded so critically to our proposals but we remain 100% committed to bringing about genuine, lasting change in the PPI market. We remain firmly of the view that the PPI market is broken and needs to be fixed.”
In the last year, the FSA has halted single premium PPI sales on unsecured loans by writing to chief executives requesting its removal from the market, taken enforcement action against 23 firms, resulting in fines totalling nearly £13m.
It has also conducted numerous mystery shops, and visited over 200 PPI providers.
The FSA invites further comments on its proposals, and responses must be received by 22 April.
