Education needed to avoid FSA MPPI rap
The CII believes it is necessary if the industry is to avoid adverse comment from the Financial Services Authority.
MPPI has come under heavy criticism from both the FSA and the Office of Fair Trading and the FSA has challenged the industry to improve aspects regarding the sale of these products or face the prospect of the regulator taking action to ensure improvements in the market.
The CII has embarked on a contact programme with its corporate customers in the mortgage market to outline their training & competence responsibilities and the support that the Institute is offering to help ensure that those who sell MPPI, and who handle claims, are competent to do so.
Richard Fox, chief executive of the CII’s Society of Mortgage Professionals said: “The controversy surrounding this class of business is detracting from its many merits. MPPI can provide vital protection for mortgage borrowers but it is essential that firms make certain – and are able to demonstrate – that the skills of their people who deal with it are up to date.”