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Shake-up aiming to raise standards on MPPI

The minimum standards for lenders to follow when providing mortgage payment protection insurance products are to be revamped to help to bring better consu- mer protection.

The Association of British Insurers and the Council of Mortgage Lenders are finalising changes to the MPPI baseline, a voluntary code which sets out the basic cover that consumers should be offered. The changes are expected to be ready by the end of the year.

But brokers have dismissed the moves as a smokescreen, claiming that the CML and ABI are not addressing the real concerns in the market, such as high excess periods on policies.

The two trade bodies are discussing changes to spec- ific policy exclusions and wordings of clauses, as well as the portability of policies.

The industry is also set to produce a consumer guide for all types of payment protection insurance and improve its transparency on refund policies later this year.

British Insurance managing director Simon Burgess says: “They need to scrap the 60-day excess as nothing gets paid till day 90 in many cases, as it is backdated, meaning the mortgage is in arrears. It is all window-dressing. The sub-prime mortgage market is worse than any other type of PPI.”

The CML says in its response to the Office of Fair Trad- ing’s study into the PPI market: “The review of the baseline is to reflect regulatory and socio-economic changes that have taken place.”


Midas duo make debut on Cofunds

The CF Midas balanced income and balanced growth funds are now available through Cofunds following the completion of a distribution link between Midas Capital Partners and the fund supermarket. The Midas funds can be accessed through a range of platforms and insurance companies including FundsNetwork, Skandia, Selestia and Winterthur LifeMidas says its CF balanced income […]

Quay appoints new product manager

Quay Software Solutions has appointed Sally Purcell as product manager.She will be based at the HQ in Bichop’s Stortford and will report to business operations manager Richard Hill. Her role will involve the management of product development, as well as enhancing client service levels. Purcell worked at 1st Software from 1999 until 2005, working initially […]

Complaints down by a third

Complaints to the Pensions Ombudsman from occupational scheme members fell by 30 per cent in 2005/06 compared with figures for the previous year.The annual report shows that the ombudsman received 2,790 new written enquiries to add to 360 brought forward from the previous year, with 2,821 being dealt with during the year.The ombudsman started 937 […]

Base rate held at 4.75 per cent

The Bank of England has held the base rate at 4.75 per cent, following last month’s 0.25 per cent increase. Alliance & Leicester head of intermediary mortgages Mehrdad Yousefi says: “Following last month’s rise in the – which took some commentators by surprise – a further rise in September was not anticipated. “The decision to […]

Global equities: time to de-risk?

While equity valuations have doubled since the financial crisis, Simon Edelsten explains that there are still pockets of value. But not where you might think Macro-economic uncertainty is causing turbulence in equity markets. Artemis Global Select Fund manager Simon Edelsten says his investment themes are taking him in a different direction to some of his peers – away […]


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