CPP shares suspended amid FSA review Shares in CPP, the credit card insurer, have been suspended following a request by the Financial Services Authority for a review of past sales practices. The request follows an investigation by the Financial Services Authority into the FTSE 250 company's sale of credit card and identity protection products in the UK, and comes a week after the insurer lost one of its biggest clients when Barclaycard decided against renewing a contract with CPP. The FSA has requested that CPP complete a review of certain past business sales and make changes to its renewals process. CPP on Monday said it is committed to working with the FSA to resolve any issues but that the FSA's requirements "are disproportionate and threaten the viability of the business." Hugo Mills, an analyst at Citi said any outcome of a review was likely to have an "adverse financial impact." With its business model significantly reliant on business partners to take its products to market, this announcement/uncertainty is likely to lead to further disruption and could, we believe, result in further partners leaving the business. The news is the latest in a series of events that hint at a wider crackdown on the sales practices of consumer insurance companies by the FSA. The City watchdog is also in dialogue with Homeserve, the domestic repairs and insurance group, after its internal investigation raised issues about its own sales procedures. Homeserve announced two weeks ago that it would cut 200 jobs following its recent decision to halt marketing activities. The home repair company has taken a £20m writedown this year for restructuring costs, plus an additional £10m each year for changes to the way it does business. Henry Carver of Peel Hunt said the news raised new concerns about the viability of the business model of consumer insurance companies like Homeserve and CPP. We are getting into very complex scenarios here. How do you tell whether someone had bought insurance because they need it, or because of clever marketing? CPP said it remained "committed to achieving an outcome that is acceptable to FSA, its customers, and its shareholders." It has been under investigation by the FSA since March last year.