CPPGroup PLC (LON:CPP) is hoping to draw a line under its controversial past as it welcomed a decision by the Financial Conduct Authority (FCA).
The FCA has approved an application made by Card Protection Plan Limited (CPPL), one of CPP’s regulated UK entities, to lift the current capital and asset restrictions placed on CPPL in the Voluntary Variation of Permissions of November 2012. The trading restrictions remain in force.
CPP got into hot water with the FCA’s predecessor, the Financial Services Authority (FSA) for a number of dodgy practices that included selling credit card holders insurance that was already covered by their standard credit card contract.
READ CPP Group: FSA review could cost firm up to £15 million
CPP says it has cleaned up its act this decade under a new management team and that the FCA’s decision would allow the group to move on from its previous regulatory issues in its UK business, to place the back-book of regulated Card and Identity Protection policies within CPPL into a managed decline position and to focus its efforts on a new strategy for its UK operation.
Shares in CPP were up 10.3% at 14.75p in lunchtime trading.