The Financial Services Authority ("FSA") has proposed
new rules to regulate the sale of insurance policies as part of
packaged bank accounts. The rules will require more rigorous
customer eligibility checks before selling packaged bank accounts
and could potentially make the sale of these accounts more
difficult. Firms which sell insurance as part of a packaged
bank account will be affected by the rules, which may also be of
interest to insurers and retail intermediary firms selling general
insurance products.
For a full report on the new rules for packaged bank accounts,
please click
here.
In addition, FSA and the Office of Fair Trading
("OFT") have published a joint consultation on proposed
guidance to firms in relation to payment protection products.
The consultation comes in the light of recent developments on
payment protection insurance (PPI), with some firms developing new
forms of protection that aim to meet similar consumer needs to PPI,
and
