The Financial Conduct Authority (FCA) has confirmed it wants to press ahead with its plans to impose a deadline for making new complaints over payment protection insurance (PPI).
The FCA has set out its position further in a consultation paper released today. It is eyeing a deadline of before June 2019, giving consumers two years from whenever the limit was accounced to get ready in time.
Advisers will not be fielding the cost of the FCA’s planned £42.2m consumer communications campaign to support the move however, as the FCA stuck by its proposal to allocate this cost amongst 18 firms that each reported over 100,000 complaints about advising, selling and arranging PPI for the six year period to August 2015.
The deadline rule is set to hit claims management companies, who have already indicated they could launch a legal challenge against the FCA if the deadline rule goes ahead.
In light of a Supreme Court ruling, the FCA is looking to change its rules to get firms to pay more redress where undisclosed commission was built in to PPI policies though.
FCA chief executive Andrew Bailey defended the proposals as the right balance for consumers and markets.
‘Putting a deadline on PPI complaints will bring the issue to an orderly conclusion in a way that protects both consumers and market integrity,’ he said. ‘We have listened to all the feedback we have received and believe that the steps we are taking are the right ones. We will ensure that our communications campaign will engage with all those who could be affected, particularly vulnerable consumers.’