Advisers should be preparing for the Financial Services Authority's (FSA) consultation paper on the ...
Advisers should be preparing for the Financial Services Authority's (FSA) consultation paper on the regulation of general insurance, due out in October, says Scottish Provident.
Although the FSA has not yet confirmed whether protection products will be included in the paper, the provider is confident it will, saying IFAs need to think in advance about what they expect the new regulations to bring and how it will affect their business.
Nick Kirwan, product development manager at Scottish Provident, said: 'This is a recent issue, but it is developing quickly. It will lay the regulatory framework for protection products for a long time to come, so advisers need to ensure they keep their eye on the ball.'
Kirwan hoped two main issues would come out of the consultation. 'We are hoping the FSA's paper will bring proportionality and consistency to protection products and it will take a risk-based approach to the regulation of protection and prioritise regulation of higher-risk products. Otherwise, it will become difficult to sell low-risk products to consumers.'
He added: 'The FSA also needs to ensure there is consistency across the board and there are not different rules between products such as critical illness and life cover.'
