With effect from 6th April 2012 sales of Payment Protection Insurance (including MPPI, short term income protection and AS/ASU type cover) will be subject to new restrictions under the Competition Commission's 2011 PPI Market Investigation Order

Quotes will now have to be provided in one of two specific formats (Schedule 4ei or 4eii) depending on whether the sale relates to a standalone sale or one linked to borrowing.  All product providers should update their software/systems to ensure that any quotes provided from 6th April meet these new requirements.

Sales of PPI will also be banned at the point of sale and importantly for mortgage brokers this means that they cannot undertake the sale until AT LEAST seven days AFTER the lender issues their offer letter OR they have provided a quote - whichever is later.  Quotes may still be provided at any stage, BUT the PPI sale cannot proceed until this time limit has expired UNLESS the customer initiates the request for cover (without any prompts!)