View more on these topics

ABI questions need for FOS levy increase

The Association of British Insurers has called into question whether the Financial Ombudsman Service needs to raise the levy to cover the costs of future payment protection insurance complaints.

Last month the FOS published its consultation on its annual corporate plan and budget for 2011/12.  It outlined plans to request an increase of up to £30m in the industry levy if firms stop paying case fees pending the outcome of the British Bankers’ Association judicial review into PPI.

The FOS warned that its reserves would be exhausted within six weeks if firms decided to stop co-operating on PPI complaints.

But in the ABI’s response to the consultation director of life and savings Helen White says: “We welcome the FOS’ commitment to improving its operational efficiency. However, we do question whether the FOS’ request to substantially increase their reserves – and thus the levy on firms – is actually required.

“The main reason for them wanting to do so is the impact that the banks’ judicial review of PPI complaints may cause. Yet the FSA has already confirmed that it expects the majority of PPI complaints to be dealt with by firms, so the FOS is unlikely to see a significant reduction in case income.”

White adds the FOS should explain why an overdraft facility cannot be used instead of raising the industry levy.

The BBA launched a judicial review into PPI complaint measures by the FSA and certain decisions made by the FOS in October, with the trade body and the regulator putting forward their respective cases at a High Court hearing in January. The ruling is expected over the coming weeks.

Recommended

1

Resolution says no need for further acquisitions

Resolution says it does not need further acquisitions as part of its UK life consolidation project. In a market update published this morning, Resolution says the returns it has been targeting can be achieved without needing to acquire more businesses. The statement says: “Resolution is confident that it will achieve its targeted mid-teen returns on […]

Jobs’ worth

How many of you out there have at least one Apple product? Lots of virtual hands in the air, I suspect. The design of pretty much anything Apple produces is legendary and the functionality is wonderful. The iPhone and iPod are truly must-have items for many people and the iPad could be heading that way. […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com