Members of the Protect Association will debate the final guidance on PPI-style products – including STIP and debt waiver – with Julian Watts, retail conduct risk at the FSA and Martin Goulden, head of credit policy at the Office of Fair Trading (OFT) on 26 February.
Members are currently submitting questions to the regulators through Protect to flag up any contentious or particular concerns prior to the meeting.
Questions so far have included; how the regulators will ensure debt waiver does not fall victim to the mis-selling PPI suffered, given disparity between level of fee and risk protected; and how satisfied the regulators are with the apparent discord between OFT requirements to register a compliance officer and the FSA’s approach to general insurance, which does not require the appointment of a CF10 compliance oversight.
Steve Devine, chairman of Protect, said: “We did the same when we met with the regulators to discuss the draft guidance and it worked well. It gives the regulators time to consider their responses. Last time it led to changes to the draft guidance that we recognise in the final guidance.”
“It is very important for the future of STIP that everyone understands what is required by the regulator and has the confidence to market products appropriately.”
Insurers represented at the meeting will include: Aviva, Genworth UK, Assurant, Allianz, Mapfre, Cardif Pinnacle and Sterling.
Devine said STIP was a good option for the majority of working people who “simply cannot afford” long term protection and clarity on the regulation was crucial.
The FSA published guidance in conjunction with the OFT on 24 January stipulating that firms distributing payment protection products – such as STIP – must ensure there are no inappropriate sale incentives.
The meeting will take place in London on 26 February from 2pm to 4pm.
