On Tuesday 2nd August the Financial Conduct Authority published a long-awaited announcement regarding the implementation of revised PPI regulations, including the introduction of a deadline for customers to make PPI complaints. For the new rules in more detail, see my previous blog here.
Following the FCA’s update last week, the Royal Bank of Scotland has since made explicit reference to increased provisions for PPI redress as a direct result of the delayed deadline in their H1 2016 Results. As part of their Litigation and Conduct results, RBS has pledged an extra £450m towards provisions for PPI redress “following the 2/8/16 FCA Consultation Paper” and that this is “largely driven by the delay to the proposed time-bar on claims”*
This is just the first sign of the significant impact the FCA’s new regulations will have on Britain’s banks. Barclay’s latest results, published four days before the FCA’s latest update, outline a £400m top-up of customer redress funds, although it is not expressly label the delayed PPI deadline as the cause for this.
These actions show us that PPI redress is a pressing, persistent issue which banks are taking great pains to put to bed.
If you would like to discuss the latest developments and how this may affect your organisation’s current and future resourcing requirements – please feel free to give me a call on (01273) 651 500 or contact me via email.