PPI inquiry ignores role of intermediaries - AMI

AMI said the Commission should have treated the channels differently, as under the proposed rules intermediaries who agree a loan will not be able to market PPI to their client for seven days.

The Comission's report suggested delaying the time when a customer arranged a loan to when they can be sold PPI will increase competition and provide better prices and products for consumers. However, AMI said the report has not recognised the separate role intermediaries play in arranging loans and insurance.

Robert Sinclair, director of AMI, said: "AMI is disappointed that the Commission has not recognised the differences in the products and sales processes surrounding intermediated and direct mortgage PPI advice and sales. The Commission should have treated these two channels differently. The introduction of seven day waiting periods or 24 hour consumer deferment will add cost and complexity to an already lengthy sales process."

This article was first published by IFAonline, part of the Incisive Media group.