UK Insurance: FCA (6 June 2017)

OAC Digest
FCA, Governance, risk & compliance, IFAs, Life insurance, Non-Life, PRIIPs

06 June 2017

The following is selected news from the UK's conduct regulator since the previous edition of OAC Digest (14 March 2017). Subscribe to get the OAC Digest by email.

On 15 May, the FCA published "Guidance consultation GC17/5: Proposed guidance on the FCA’s approach to the review of Part VII insurance business transfers." They are asking for comments by 15 August 2017.

On 2 May, the FCA published Policy Statement PS17/6: Disclosure rules following application of PRIIPs Regulation following the publication of CP16/18 in July 2016 (see OAC's response published September 2016) . This PS sets out the disclosure framework that, following the direct application of the PRIIPs Regulation, will apply to firms that manufacture, give advice on, or sell, PRIIPs to consumers in the UK retail market. Firms will need to comply with the regulation and any revised disclosure rules in the FCA Handbook from 1 January 2018. The FCA website contains a "PRIIPs disclosure: Key Information Documents" webpage.

On 26 April, the FCA published complaints data under new rules which came into force on 30 June 2016. The FCA website contains aggregate and firm-specific data showing figures for individual firms reporting 500 or more opened complaints.

On 18 April, the FCA published five documents:

1. Our Mission

  • This sets out the framework for the FCA's strategic decisions, the reasoning behind their work and the way they choose the tools to do it.
  • There is an emphasis on vulnerable consumers and the expectation that firms are proactive in finding ways to ensure they treat customers fairly. 

2. Sector Views

  • The Sector Views cover all the markets the FCA regulates, grouped into seven sectors including general insurance and protection and retail investments.
  • The FCA continues to have concerns about vulnerable customers (including the use of big data), governance and operational resilience (including cyber risk)

3. Business Plan 2017/18

  • The FCA comment on key planned activities in the various sectors. In the general insurance and protection (GI&P) sector this includes a market study on wholesale insurance market, value in the distribution chain, firms' pricing practices, Insurance Distribution Directive (IDD) and IT resilience.
  • The cross-sector priorities include consulting on the accountability regime for all FSMA firms, investigating how new technology can improve the efficiency of AML processes, investigating how near and real-time compliance monitoring can reduce the regulatory burden and publishing approach to addressing UK consumers’ needs 

4. Annual consultation on fees

5. Feedback statement to Mission consultation

On 11 April, the FCA and HMT published a progress report reporting on the progress towards implementing the Financial Advice Market Review (FAMR) recommendations. The FCA is consulting on guidance relating to four of the recommendations intended to clarify the regulatory framework.

David Gray

For more information
David Gray
Consultant Actuary

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