On 2 March 2017, the Financial Conduct Authority (“FCA”) published PS17/3 which contains final rules and guidance on payment protection insurance (PPI) complaints. Most notably the rules include a deadline of 29 August 2019 for consumers to complain about the way they were sold PPI.
The Policy Statement also details:
- An FCA-led consumer communications campaign designed to inform consumers of the deadline;
- A new fee on eighteen firms to fund this campaign;
- New rules and guidance on handling PPI complaints in light of the Plevin v Pargaon decision in respect of undisclosed commission. These new rules confirm the FCA’s original proposal that there is a “tipping point” of 50% after which the firm should assume that the non-disclosure of commission gave rise to an unfair relationship. The FCA also confirm that “profit share” should be included in the figures when determining the level of commission. Again in line with the FCA’s initial proposal, commission will be calculated as the excess commission over the 50% “tipping point”.
The FCA’s press release can be read here.
PS17/3 can be read here.