THE FUTURE of CPP Group hangs in the balance after the business suspended the trading of its shares on the London Stock Exchange.

The move was in response to the Financial Services Authority (FSA) extending its investigation into certain issues surrounding the sale of the group's card protection and identity protection products in the UK.

The card and identity protection business, which employs about 1,000 people in York, said it had been contacted over the weekend by the FSA, which has requested CPP undertake a review of certain past business sales and make certain changes to its renewals process.

CPP said that while it acknowledged a past business review was appropriate, it has told the FSA that its requirements are disproportionate and threaten the viability of the business.

The business said in a statement to the stock exchange: “The board has been, and remains, absolutely committed to working closely and cooperatively with the FSA to resolve its issues. At the same time it has frequently emphasised the potential threat to CPP, a business which employs 1,341 people in the UK and 1,969 people in 16 countries worldwide, of prolonged discussions.”

The business said it was in talks with the FSA to try to agree a review that would be acceptable for both sides, but said there was “no certainty” that the discussions would be resolved or what the scope of any review exercise that might be acceptable to both FSA and CPP might be.