Advisers angered over PPI request
Financial advisers have been angered by a request from the Financial Ombudsman Service (FOS) to reveal details of insurance distribution deals with lenders between 2001 and 2005.
It follows advice by the Competition Appeal Tribunal asking the Competition Commission to reconsider a decision to ban payment protection insurance (PPI) being sold at the point of sale.
Larger intermediaries offering PPI have been asked to supply confidential details of deals made when protection providers were regulated but most brokers were not regulated.
The advisers fear that blowing the whistle on these suppliers now may result in them being denied business, which would reduce their options in a market where products are already scarce.
Says Robert Sinclair, director of the Association of Independent Financial Advisers: "Where firms are asked for information to defend a case, the firm has a choice as to how much information they provide to the FOS.
"We are not aware that that FOS has any right to demand particular documentation for any firm to defend itself."
Emma Parker, spokeswoman for FOS, says: "We are asking for standard things around the commercial agreements that firms had at the time and always try to ensure that we have all the relevant, accurate information."