If you polled the British public on their opinion of Payment Protection Insurance (PPI), the would probably be a 50/50 split. Half would probably never have heard of a PPI before and the other half would say they aren’t worth the paper they are written on.
One thing’s for certain, no-one would sing the praises the insurance cover, unless of course one of the people you asked was Tony Byrne, managing director of IFA Wealth and Tax Management. Unsurprisingly, he isn’t thinking about all the PPI compensation claims when he shares his thoughts on the FSA and Payment Protection Insurance with the Financial Times.
He said: “Most of these are against insurance companies and banks because they are still selling products that should not be sold.
“The FSA allowed PPI to be sold and then it decided it was mis-selling and I think that the product was wrong and has been for a number of years. One of the big reasons complaints arise is because it encouraged by the regulator – because it keeps them big. I am quite cynical about the whole thing.”
Mr Bryne said while the quality of advice is increasing, advisers have to deal with increased regulation, such as treating customers fairly.
He said: “Insurance companies and banks should come under TCF. IFAs build long-term relationships with clients, not customers. There have been more complaints with investment performance going down and we have become a more litigious society.”
David Barnett, principal of Middlesex-based DPB Independent Financial Services, said the FSA made it too easy for the public to complain or the complaints management company to complain on the public’s behalf.
He said: “There should be a modest deposit, and if the complaint is upheld they should get their money back and if it is not it should be put towards costs.
“Some complainants hope that they get money for nothing. The FSA is bending over sympathetically with the public and there is no balance between the responsibilities the adviser has and the member of the public has. The simplest way is for the public to forfeit money if the complaint is not upheld.”
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