MSE News: FSA rules to be tightened on packaged current accounts

Former_MSE_Guy · 27 October 2011 at 9:37AM

This is the discussion thread for the following MSE News Story:

"Rules to ensure providers check customers are eligible to claim on insurance before selling a packaged account have been proposed ..."

Read the full story:
FSA rules to be tightened on packaged current accounts

chillxxx · 27 October 2011 at 12:46PM

I have to say I think the banks have stitched them selves up here. Its a case of miss selling again like PPI premiums. If the FSA rules are applied their will be agrument to weather they apply retrospectively and potentially open the floodgates for everyone to reclaim.

Surely one day they will learn

Alpine_Star · 28 October 2011 at 7:39AM

chillxxx wrote: »

Its a case of miss selling again like PPI premiums. If the FSA rules are applied their will be agrument to weather they apply retrospectively and potentially open the floodgates for everyone to reclaim.

Unfortunately it looks like it won't apply retrospectively:

2.1 The sale of insurance is subject to our Insurance Conduct of Business (ICOBS) rules and our Principles for Businesses. We did not write our ICOBS requirements with packaged bank accounts in mind. Although our current rules give firms flexibility to comply in different ways we think it is necessary to make detailed rules and specify the steps firms must take to establish eligibility and suitability (for future sales), in order to provide appropriate consumer protection.

http://www.fsa.gov.uk/pubs/cp/cp11_20.pdf

MSE News: FSA rules to be tightened on packaged current accounts

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